Australian Vintage Secures 500,000 Cases and $15M Revenue Boost from Invivo Agreement

Strategic Expansion into UK and Ireland

Australian Vintage Limited (ASX – AVG) has announced a significant step in its international growth strategy by entering into a five-year distribution agreement with Invivo & Co Limited. This deal grants AVG the rights to distribute Invivo’s portfolio, including the Graham Norton, Invivo X SJP, and Invivo branded wines, across the United Kingdom and the Republic of Ireland.

The partnership is set to commence once Invivo’s current distribution arrangements in the UK conclude, marking a new chapter for AVG’s presence in these key European markets. The move aligns with AVG’s broader ambition to leverage its global scale and retailer relationships to expand its brand portfolio strategically.

Revenue and Volume Boost

The agreement is expected to add approximately 500,000 cases to AVG’s annual shipment volume, translating into an estimated $15 million in additional revenue each year. Importantly, the deal is described as margin and cash flow accretive, suggesting that it will not only increase top-line sales but also enhance profitability and liquidity.

CEO Tom Dusseldorp emphasized the strategic value of the partnership, highlighting how it allows AVG to grow in desirable wine segments while protecting its core brands. The inclusion of award-winning and innovative wines from Invivo complements AVG’s existing portfolio, potentially strengthening its competitive position in the UK and Irish markets.

Implications for Shareholders and Market Position

For shareholders, this deal signals a proactive approach to growth through collaboration rather than organic expansion alone. By representing a well-regarded portfolio like Invivo’s, AVG can tap into established brand equity and consumer demand in mature markets.

While the announcement does not specify the exact timing of revenue recognition or the transition details from Invivo’s current distributor, the clarity around the five-year term and financial expectations provides a solid foundation for investor confidence. Market watchers will be keen to observe how this partnership influences AVG’s market share and financial performance in the coming quarters.