AVL Wines has launched its sustainability roadmap Creating Good Times For Our Future which includes a target to achieve net zero carbon emissions by 2040,
AVL Wines Chief Executive Craig Garvin says, “Sustainability is paramount to our success in the future. It’s a critical issue but also one of the biggest opportunities of our time. It’s more than a social licence, it’s a value creator and a key driver for innovation.
“Consumers want to support brands and businesses that put people and planet first and we’re seeing this in the purchasing decisions of our customers. We are undertaking world-class initiatives and embedding sustainability into our DNA. We are on a journey, with an ambition to be net positive in everything we do.”
Head of Sustainability Lucy Nash says that the renewed focus on understanding the impact of the business is an opportunity to take an industry leadership position.
“This process has enabled a more robust, progressive, and long-term roadmap to fuel our progress and future-proof our business. Our ambitious science-based approach will propel the business to Net Zero by 2040, a decade ahead of the standard 2050 target,” she said,
To achieve the Net Zero target by 2040, AVL will:
- transition entirely to renewable energy sources
- address downstream transportation emissions and
- innovate to achieve sustainable packaging solutions and meet 2025 National Packaging Targets.
Financial Results
Last week AVL reported its financial results for the year with an NPAT of $17.3 million, down $2.3m on the previous financial year. AVL attributed the loss a number of factors including one off hits, such as the closure of cellar doors and out of stocks in the UK following Brexit which cost the business $4.5 million altogether, lower SGARA and a foreign exchange loss costing $1 million.
Reported EBIT of $28.8 million were 8 per cent lower than in the previous financial year driven by those abovementioned factors.
Revenue derived from super-premium and premium products is up 20 per cent since 2019, now accounting for 13 per cent of AVL’s revenue and AVL continues to grow market share for all its products at twice the rate of the overall UK wine market.
Growth in Asia for the financial year was up 18 per cent led by sales in Taiwan, Malaysia and Singapore, even while China remains an important future partner in trade. In addition to updating its operations in Asia, AVL now also has people on the ground in Canada where growth was up 26 per cent when compared to the previous financial year.
Chief Executive, Craig Garvin, said, “Our consumer-led portfolio approach is working, reinforcing AVG’s continued investment in marketing, as we improve overall margin, product mix and market share in key geographies.”
“We have significant growth opportunities in Asia and Canada over the next five years as we now have implemented key people and operational changes,” he said.
