Magazine article Business Asia

Winning Wines Swell Profits for Southcorp

Magazine article Business Asia

Winning Wines Swell Profits for Southcorp

Article excerpt

Best Australian Large Business Activity in Asia

Southcorp, Australia's No. 1 maker of wine, continues to surge on the back of the world's growing appetite for Australian wine.

The diversified manufacturer's first-half profits rose 14 per cent to A$91.5 million. And the company's wine business, which contributed 42 per cent of profits, increased earnings by 22 per cent to A$65 million.

Wine sales in the half rose 23 per cent to A$400 million, bolstered by a 38 per cent increase in international takings.

The maker of such internationally renowned brands as Penfolds Grange and Lindemans Bin 65 chardonnay has been named the Best Australian Large Business Activity in Asia in this year's Business Asia Awards.

The main markets for Southcorp Wines in Asia are Japan, Taiwan, Hong Kong, Singapore, China, Malaysia and Thailand.

The company's recent focus has been on expanding its international business and becoming a true global player in the wine industry. It has invested A$250 million since 1993 to expand its premium wine-making capacity to take advantage of a global shortage of wine, particularly high-quality red wine.

Southcorp, which also has packaging and appliance units, has now increased its international wine sales by more than 700 per cent since 1991, from approximately A$40 million in 1991 to A$313 million in 1998-99, and now constitute almost half of the company's revenue. Lindemans has become Australia's largest exported brand, achieving international sales of 2. …

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