By The Canadian Press

GRIMSBY, Ont. - Andrew Peller Ltd. (TSX:ADW.A) said Wednesday that it earned $2.2 million in its latest quarter, down from a profit of $2.4 million a year ago.

The winemaker said the profit amounted to 16 cents per diluted class A share for the quarter ended Sept. 30 compared with a profit of 17 cents per diluted class A share a year ago.

Sales in the quarter totalled $67 million, up from $65.8 million.

"We are pleased to see continued solid organic growth across the majority of our trade channels in fiscal 2010," president and chief executive John Peller said in statement.

"Looking ahead, we are beginning to see an improvement in sales at our estate wineries and expect improved performance through the balance of the fiscal year and going forward."

Last month, Andrew Peller signed a deal to sell its Granville Island Brewing business to Creemore Springs Brewery, an Ontario beermaker owned by Molson Coors Canada Ltd. (TSX:TPX.B), for an undisclosed amount.

The transaction is expected to be completed in early 2010.

Proceeds from the sale are expected to be used to reduce debt.