A successful centralization with results that exceeded targets: Provins had a good financial year in 2009.

The centralization of the cellar storage and winemaking activities, the completion of the harvest using a new process, and the opening of the three «Espaces Provins» in Sion, Sierre and Leytron were highlights of 2009 for Provins. Operational results exceeded forecasts.

The 2009 financial year can be described as good for Switzerland’s leading wine producer. The turnover was around CHF 64 million, a rise of 3% in relation to the budget and a drop of 3% compared with 2008. This decline is explained by a reduction in promotional activities and a withdrawal from bulk wine sales.

Sales of the Enomatic systems are progressing and for the first time exceeded half a million Swiss Francs. Benefiting from the development of valued-added products and from the progress of Provins’ brands, margins increased by two percentage points compared with 2008. The volume of sales of specialities also increased by more than 9.7%.

The balance sheet stands at CHF 122 million, with the proportion of capital on the balance sheet – after the centralization – still more than 35%.

Provins brands continue to gain market share, showing – in addition to the recognized quality of the products – the effectiveness of the company’s commercial and marketing approach. The notable developments are in the following lines: «Spécialités du Valais» (+ 30%), «Collection Chandra Kurt» (+ 28%), «Crus des Domaines» (+ 25%) and «Grand Métral» (+ 11%).

A successful centralization project
After more than six years of feasibility studies and two years’ work, the centralization of Provins’ cellar storage and winemaking activities in Sion was completed on time and within budget. In parallel, three sites for receiving the harvest in «box pallets» were opened in Leytron, Conthey and Noës. The new process for cellar storage has worked to the satisfaction of our members and our technical department.

From a commercial point of view, the three sales points known as «Espaces Provins» were launched in the spring of 2009. These attractive locations enable Provins to keep a strong regional anchorage in Sion, Sierre and Leytron and to offer a large selection of wines as well as professional services.

Regarding the harvest, the 2009 vintage is showing a strong predisposition for wines that can be laid down, with a high alcohol content and harmonious tannins.

A first look at 2010
The beginning of 2010 has shown the market remaining tight, particularly in the large retailer sector in Switzerland, where price pressure has increased following the arrival of new players in the market. In terms of export, conditions are not the most favourable at the moment, with the Swiss Franc being very strong in relation to the Euro. Nevertheless, adjustments carried out at the level of the selection of wines and the quality of our products suggest a positive outlook for Provins in 2010.

Sion, 17 June 2010