Australian family-owned company Stonier Wines has acquired one of the country’s oldest wineries, Seppelt Wines, from wine holding company Treasury Wine Estates. The deal includes Seppelt’s vineyards and winery in Great Western in western Victoria, as well as the Drumborg vineyard near Portland in the southwest of the state. The value of the deal has not been disclosed, and completion is expected in mid-October, ABC News Australia reports.
Resumption of production
Stonier Wines plans to resume winemaking at Seppelt’s Great Western facility, which has been largely inactive since 2014. According to Stonier CEO and co-owner Aaron Drummond, the plant previously processed about 8,000 tonnes of grapes a year, but currently carries out no processing. The company expects to process several thousand tonnes of grapes at the site.
The new owners also intend to use Seppelt’s historic underground wine cellars, which in recent years have mainly served as a tourist attraction. Stonier’s premium sparkling wines are planned to be stored there. The Drives underground cellar system in Great Western extends for 3 kilometres and is the largest in Australia.
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Treasury’s portfolio reduction
Seppelt became the first brand that Treasury Wine Estates is selling under its plan announced in June to reduce its portfolio from 76 wine brands to fewer than 30. Treasury Wine Estates acquired Seppelt in 2011 along with Foster’s Group’s wine division.
The Seppelt brand was founded by the Seppelt family in South Australia in 1851. In 1918, the family acquired Hans Irvine’s vineyards in Great Western. Aaron Drummond said Stonier would focus on quality rather than increasing production volumes, despite declining global demand for wine, excess supply and low prices in the industry.
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