Leadership Change at Australian Vintage Highlights Challenges in Restoring Shareholder Value

Leadership Transition at Australian Vintage

Australian Vintage Limited (ASX: AVG) has announced a significant leadership change with the appointment of Tom Dusseldorp as Chief Executive Officer, effective 30 April 2025. This transition follows Craig Garvin’s decision to step down after guiding the company through a turbulent 2024, a year marked by market headwinds and operational challenges.

Garvin, who originally transformed Australian Vintage from a family business into a major player in the Australian wine industry, returned last year to stabilize the company and set a clear strategic direction. His tenure during this critical period has been credited with repositioning the business and establishing a robust leadership pipeline.

Continuity and Strategic Focus

Tom Dusseldorp, formerly Chief Commercial Officer, brings over 15 years of leadership experience across Australia and the UK, including senior roles at Pernod Ricard and entrepreneurial ventures. His deep familiarity with Australian Vintage’s operations and markets positions him well to continue the company’s strategy focused on accelerating revenue growth and achieving sustainable positive cash flow.

Chairman James Williamson emphasized the board’s confidence in Dusseldorp’s ability to provide continuity and drive the company’s growth agenda. The leadership change is framed not as a departure from the existing strategy but as an opportunity to execute it with renewed vigor, particularly through targeted investments in innovation and brand development.

Financial Discipline and Incentives

Dusseldorp’s remuneration package includes a fixed annual salary of $600,000, with flexibility in cash and non-cash components. Notably, there is no short-term incentive plan (STIP) component, but he will participate in a long-term incentive plan (LTIP) designed to align his interests with shareholders and support sustained value creation. Details of the LTIP are currently under review by the board and will be disclosed in due course.

This compensation structure underscores Australian Vintage’s emphasis on long-term performance and disciplined capital management, aligning leadership incentives with the company’s strategic priorities amid ongoing market uncertainties.

Navigating Market Challenges

While the company acknowledges the challenging market conditions, including economic pressures, foreign exchange volatility, and geopolitical risks, it remains committed to restoring shareholder value. The reset achieved since mid-2024 provides a foundation to accelerate growth and improve operational efficiency.

Dusseldorp’s appointment signals a new chapter for Australian Vintage, one where commercial expertise and strategic focus will be critical to navigating the evolving landscape of the wine and spirits sector.