Accolade Wines has confirmed media reports earlier this week that it is looking to sell one of its premium brands, House of Arras.
A spokesperson for the company said it was, “sounding out potential interest” in its House of Arras business, “including the brand, the Bay of Fires winery and vineyards in Tasmania”.
“The company believes it is the right time to consider a divestment of Arras to allow us to focus on other parts of the business with a closer strategic alignment to the rest of our portfolio,” the spokesperson said.
Accolade Wines was #42 on the 2022 Food & Drink Business Top 100 Food & Drink Companies report, under its parent company Amphora Group. Its brands include Hardys, Banrock Station, Petaluma, St Hallett, Houghton Wines, Grant Burge Wines, Krondorf, Croser and Bay of Fires.
Amphora’s revenue for FY21 was $540 million, up from $508 million the previous year. The ultimate parent company is the UK-based Amphora Group Ltd.
In 2018, global private equity firm The Carlyle Group acquired 100 per cent of Accolade Wines, with the group the fifth largest wine company globally at the time. The company is Australia's largest wine company by volume.
The company said that as part of its global strategy it “constantly reviews its asset mix to ensure its capital is focused on brands and markets with the greatest potential”.
“The strategic divestment of some of assets, particularly vineyards and production facilities either outright or through sale-and-leaseback arrangements, is in line with this capital-light model and allows the company to redeploy capital to invest in its brands and growing sales,” they said.
Market Research company Global Data forecast the Australian wine market would grow by 4.1 per cent between 2021-2026. GlobalData consumer analyst Bobby Verghese said the fortified wine category, which is set to register the fastest value CAGR of 5.7 per cent, followed by still wine (4.6 per cent) and sparkling wine at 3.9 per cent.
In September last year, the House of Arras celebrated 25 years of 100 per cent Tasmanian winemaking.
“House of Arras brand is led by Ed Carr, Australia’s most awarded sparkling winemaker, and includes 24 hectares of vineyards in the pristine wine growing region in the Bay of Fires, Tasmania,” the spokesperson said.
The company said it had “no intention to divest the Bay of Fires or Eddystone Point brands, or the Bay of Fires cellar door” at this stage.
“Accolade’s growth strategy and our focus on key markets and brands is building momentum and this is through the exceptional hard work of our people and staying focussed on our strategy during a challenging time.
“In Accolade’s two biggest markets – Australia and the UK – the company continues to gain share across key categories. Accolade has also identified opportunities for growth in markets including the US and Asia. A recent example in the US is the successful launch of our partnership between J-Shed wines and NBA All Star and cultural icon James Harden,” the spokesperson said.
Meanwhile, the company is innovating in a other areas, including launching its ZERO NoLo alc label for Hardys and a new premium label &Then last year.
It also worked with the Australian Packaging Covenant Organisation (APCO) to develop the first Australasian Recycling Label for the wine industry, has focused on developing more sustainable packaging options and trialled the world's first closed-loop wine distribution system with its Banrock Station label, which it is repositioning as a sustainable brand.
In July 2022, Accolade sold its Beenak Vineyard to Treasury Wine Estates, saying it had an oversupply of pinot noir and chardonnay grapes within the business.
