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Wine supply and joint venture agreement for Aust Wine Holdings

Australian Wine Holdings Ltd has expanded on its wine supply agreement and joint venture arrangement with McWilliam's Wines Pty Ltd to include the award winning "Hay Shed Hill" and "Pitchfork" wine labels.
The extension of the agreement to include the "Hay Shed Hill" brands builds on the original agreement covering the "Alexandra Bridge" label announced in July 2005, which requires Australian Wine Holdings to supply certain wines under labels to be jointly owned by the parties.
McWilliam's Wines will again underwrite the first 5 years of sales by way of minimum case purchase levels. Australian Wine Holdings is required to make available additional volumes under the agreement, thereby providing the opportunity for growth over and above the minimum levels.
Australian Wine Holdings managing director Mike Calneggia said: "We are very excited to be expanding our close working relationship with McWilliam's Wines, one of Australia's most respected wine companies. It is great to have our winemaking ability and our unique regional positioning recognised and acknowledged by an experienced industry participant. In contrast to the current unpredictable wine industry conditions, we look forward to the steady and sustainable growth provided by the expanded joint venture agreement."

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