Company Interview / the call corner office: AVG refinanced & reimagined

Key points:

Refinancing to 2028 supports Australian Vintage’s turnaround and free cash flow focusPoco Vino small formats positioned as a core growth engine across Australia, Asia, UK and US -Turnaround underpinned by refinancing, cash flow discipline and aligned lenders

Tom Dusseldorp from Australian Vintage (ASX:AVG) sets out a turnaround strategy centred on strengthened financing, disciplined cash flow and innovative wine formats. Dusseldorp states that the group secures refinancing through to 2028, aligned with a three-year strategic plan targeting free cash flow neutrality and improved balance sheet flexibility. He points to a cash swing of roughly $35 million since 2021 and guidance for 4–5% second-half revenue growth as evidence, in his view, that the reset is gaining traction.

A key pillar is Poco Vino, a slim, flat small-format wine bottle Dusseldorp describes as “absolutely critical” to Australian Vintage’s future growth. He argues that shifting occasions, health consciousness and consumers drinking less but better make single-serve formats a structural trend rather than a niche. Strong early demand in Australia, the UK and Asian markets such as Thailand, Malaysia and Singapore is seen as validation of this strategy, with US production in California scheduled to begin.

Beyond Poco Vino, Dusseldorp highlights zero-alcohol and lighter-style wines, and brands like Lemko, which is expanding across Australian retail and into 13 US states. He sees Australian Vintage as well placed to benefit from global consolidation in wine.