Allied Domecq ponders Aussie wine play

Drinks giant Allied Domecq is to consider launching its own Australian wine brand after failing to capture Peter Lehmann wines.

Allied was forced to withdraw its bid for Australian winemaker Peter Lehmann Wines, leaving the way clear for Swiss drinks firm Hess.

Chief executive Philip Bowman (pictured)​ said he would continue to scour the Australian wine market - a weakness in the Alllied portfolio - for acquisitions.

However, if the company cannot find a suitable target, setting up a winery or launching a brand from scratch would be an option.

Mr Bowman rejected reports that Allied might now bid for the Australian Southcorp wine business instead.

The news cam as Allied Domecq repoted results.

Growth in UK sales for spirits and wine giant Allied Domecq has been countered by a sluggish performance elsewhere in Europe.

Unveiling total sales up two per cent to £3.4bn, with pre-tax profits up 3 per to £495m, Allied said spirits & wine volumes were up eight per cent to 68.6 million cases in the year to the end of August.

The company also grew sales in the US. Chief Executive Philip Bowman, said: "The strong performance in the US this year has helped us ride out difficult conditions in the Eurozone."

In the UK, Teacher's, Courvoisier, Tia Maria and Malibu a performed well.

Courvoisier, which has become a style icon after being adopted by rap artists, grew volumes by 6 per cent, while Tia Maria grew by 33 per cent as a result of the launch of Tia Lusso. The brand extension has taken the number two cream liqueur spot in the UK behind market leader Baileys.