TK in town, kind words, first victim of Brexit

TK heads south

I’ve booked to attend the Winemakers’ Federation of Australia Outlook Conference in Adelaide on July 25. I arrive in town on the 24th and depart early on the 26th, which means I am free on two nights. I have posted on Facebook and already a couple of people are interested in catching up for drinks, maybe a bite to eat and a chat. There is room for more, so please, if you’re floating around town and interested, let me know.

Paper, wine, writer

It is a pity that wine columns in newspapers are disappearing, but wine writers shouldn’t be surprised. Wine columns are not as widely read as their writers like to think they are. If they were, they would attract advertising and the paper wouldn’t dump them in favour of a kid on work experience rearranging a media release.

I have never been under the illusion that my wine reviews have turned the tide, so was delighted when a reader (consumer) left a comment on that TKR site that included this: “Have just placed an order of value reds & whites/rosé you recommend with Dan Murphy’s (they had most online and a couple on special), best of all they have a free delivery deal for July. I enjoyed free courier-delivered wine from Aldi (your recommendations) right to my door until they shut shop. Little wonder they worked out it wasn’t very cost effective.”

First victim

Australian Vintage is the first to admit it’s a victim of the Brexit vote. A media release from the company on July 5 contained a trading update. Sales are good, up 8 per cent on the previous year. The company says before the UK voted to leave Europe the company was forecasting a 10-15 per cent increase in net profit. Now it’s saying:

“AVL will need to account for an unforeseen unrealised foreign exchange loss of approximately $1.0 million (after tax) as at 30 June 2016.

“This unrealised loss is based on the exchange rate impact on our UK based working capital. Our foreign exchange hedges are based on caps and collars and therefore provide a range.”

The graph below is from http://www.x-rates.com/ it’s the Australian dollar to the pound for the past year. One chart or incident does not the future make but it’s not a good sign:

4 Up the dollar

If it’s any consolation, the pound is also down against the euro, and EU wines are also going to increase in price on UK retail shelves.

The danger is that the powerful retailers will, as they always do, ask suppliers to absorb the difference.

Top guns

Congratulations to the Riedel Young Gun of Wine winners:

  • Top Gun went to Josephine Perry of Dormilona in Margaret River.
  • Wine Australia Best New Act was Jasper Button of Commune of Buttons in the Adelaide Hills.
  • The People’s Choice went to Ricky Evans of Two Tonne Tasmania.
  • The Ocean Eight Winemaker’s Choice went home with Michael Downer of Murdoch Hill (Adelaide Hills).

Sniffing and playing…

Interesting to see CHAMP, the master of Accolade Wines, has mustered the Accolade senior team to troll around Asia sniffing out possible buyers of the whole kit and caboodle, or investment in a float. The game is in play and hotting up.

It’s the new financial year and TKR remains ongoing. Perhaps “surviving” is a better description. For those who continue to support, thank you. It’s deeply appreciated. Now it is the new FY, perhaps this is a good time to settle those TKR invoices from the last FY.

Hope you have a good week, indeed year, ahead.

Tony

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