Agamy co-operative back in the black

Monday January 29 2018 by Vitisphere

On Tuesday, January 16, 2018, elected representatives on the board of directors of the Agamy co-operative winery in Beaujolais presented results for the 2016-2017 financial year. They showed an accounting surplus of €125,000: "This is a collective management decision: we preferred not to distribute the money to member growers but to replenish reserves, and regain strength”, explained chairman Sébastien Coquard. “The results put us back on track and show that the co-operative is not on its knees. Tongues have been wagging... Agamy is not about to close down”, he said reassuringly.

Overheads cut

In order to improve its results, the company made combating “waste” its primary focus. In other words, it sought to reduce the amount of fixed costs by downscaling its staff - choosing not to replace retiring employees and the last director - by integrating certain tasks that were outsourced and therefore more costly, and by closing the Sain-Bel winery... These efforts should become even more apparent in the 2017-2018 financial year, following a forecast 10% drop in overheads.

Good ‘nouveau’ sales in a sluggish marketplace

 

On the business side, turnover totalled 16 million euros from stable sales of 2.5 million equivalent bottles. Sales increased in French super/hypermarkets (+4%) and in export markets (+12%), underpinned by new contracts found by In Vivo Wine. However, they were down in the on-trade and wine merchants (-6%). 2017 nouveau sales were healthy, with bottled sales volumes up +37%, fuelled by Japan (+22%).

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