The Board of Australian Vintage has announced the reappointment of Craig Garvin as CEO, who says he is not bitter about his past treatment.

“The new Board of Australian Vintage is pleased to welcome Craig back to AVG,” the Board said in a statement to the ASX.

“His appointment follows an external search that considered a number of exceptional candidates.”

Garvin’s return follows a clean sweep of the Australian Vintage Board in the five months since his departure. New Chair James Williamson, whose fund Wentworth Williamson controls 5% of the company, backed Garvin’s reappointment.

Australian Vintage, which produces brands including McGuigan, Nepenthe and Tempus Two, has ever revealed why Garvin was removed as CEO, other than to state he “displayed a lack of judgement … inconsistent with the values of the company”.

At the time of his termination, The Australian reported that Garvin was considering a defamation and a possible wrongful dismissal case.

Garvin told the Australian Financial Review his focus moving forward was on rebuilding Australian Vintage’s share price, which has fallen more than 60% in six months.

“The past is the past. It’s upward and onward,” he said.

Chairman’s statement on Garvin’s shock reinstatement

“After a thorough review of the circumstances and processes surrounding his departure from Australian Vintage in May, the Board felt it was important for Craig to be involved in the search process,” Chairman James Williamson said.

“Craig’s track record at AVG, his leadership style and deep understanding of our industry and our partners make him the right person to lead the company.

“He is a respected and well-liked leader who successfully led the change at AVG in a challenging environment.

“This included the development and implementation of the company’s five-year strategic plan, which transformed the company into a consumer-led business with a commitment to innovation.

“His appointment, after a difficult period for the company, highlights the Board’s laser-like focus on restoring shareholder value.

“Craig’s appointment positions us to strengthen the company and take advantage of opportunities in Australia and international markets.”

Williamson added to The Australian: “There was fresh eyes relating to Craig and I must tell you there was an assessment done by Lander & Rogers, the employment law firm, and there was never any recommendation that Craig should be dismissed (in May) … there has been no stone unturned, and I can tell you Craig’s reputation both here with the staff and all our stakeholders is fantastic.

“This business stagnated for a time and to see relief and excitement to have him back, and there is work to be done. And we have good assets and a fantastic team.”

“The right person to take Australian Vintage forward”

Garvin was CEO of Australian Vintage from November 2019 to May 2024. Prior to that, he was CEO of leading dairy manufacturer Parmalat for nearly a decade.

Chair of the Board’s People, Remuneration and Nomination Committee Margaret Zabel said: “Craig has demonstrated his ability to create an effective high-performing team, build a strong culture, and develop enduring relationships with customers and other stakeholders.

“He is the right person to take Australian Vintage forward, and we are looking forward to working with him to create value for our shareholders to deliver great wine brands to our customers.”

Garvin’s first day as Australian Vintage’s reinstated CEO is 14 October 2024.

$600 million wiped from value of Australian wine brands

The Australian Financial Review has reported almost $600 million has been written off the value of the country’s most popular wine brands – from Jacob’s Creek to Wolf Blass – “as the big producers battle to attract younger consumers who are increasingly turning to ready-to-drink spirits”.

“In new filings with the corporate regulator, Pernod Ricard’s local holding vehicle disclosed that $145 million had been written off the value of its brands in the 12 months to the end of June last year,” the AFR said.

“The company declined to say whether it had written off more of the value of those labels after that.

“That adds to more than $350 million written off Treasury Wines’ brands – mostly its four big commercial labels Wolf Blass, Lindeman’s, Yellowglen and Blossom Hill – and $74 million recorded by Australian Vintage, the ASX-listed winemaker that owns McGuigan and Tempus Two.”