Ontario-based winery Andrew Peller has reported sales of $71.3m in the second quarter (Q2) ended 30 September 2012, up 4.4%, against sales of $70m for the same period last year.

The increase in sales was primarily due to agreement with Wayne Gretzky, acquisition of Cellar Craft and introduction of new products like skinnygrape and was partially due to lower sales of the company’s personal winemaking products.

Net earnings for the latest quarter were increased from $3.4m in Q2 2011 to $4.3m in 2012.

Gross margin was 38.5% of sales in the second quarter of 2012 compared to 39.0% in the same period last year.

The decrease in gross margin percentage was due to positive impact of sales of higher margin products and positive cost control initiatives to reduce distribution, operating and packaging expenses.

Andrew Peller CEO and president John Peller said their organic growth continued across the majority of trade channels in the second quarter, augmented by solid contributions from their recent acquisitions.

"Looking ahead, we are confident our growth in sales and profitability will continue as key brands continue to perform extremely well and the positive impact of new product launches allow us to build on our presence as Canada’s leading producer and marketer of fine quality wines," Peller added.