Manufacturing News

High dollar hurts winemaker d’Arenberg

D’Arenberg’s profit has almost disappeared, with the family-owned McLaren Vale winemaker hurt by the high Australian dollar and weak economies in key markets.

The South Australian winemaker, which celebrated its 100th anniversary last year, reported that revenues were down to $20.15 million in the 201-12 financial year, from $25.06 the prior year.

Margins have been affected in the United States by the high dollar, with weak demand there and in other key markets the UK and Europe.

''The dollar does impact on your ability to drive sales and do other things around that, and we have had to move our prices slightly up [in America] to cover some of the costs of the dollar. And we have worn some of the costs as well,'' sales and marketing general manager Philip Jeffries said, in comments reported by Fairfax Media.

Over 65 per cent of d’Arenberg’s wine is exported. Difficult conditions have seen profit shrink to $170,000.

'Because of the exchange rate there is very little margin for us and our distributors over there [in America] and it makes it very hard to make things work. But we are fighting hard to maintain our distribution,'' said Jeffries.

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