In its latest move to restructure the business, Treasury Wine Estates says it is divesting its commercial winery Karadoc, in Victoria and vineyards in Victoria and New South Wales.
TWE chief supply officer Kerrin Petty said closing Karadoc was considered very carefully and only as a last resort.
“Making the decision to close a site is something we take very seriously and is a last resort after we’ve looked at all other possible options. We’re committed to assisting our team members to find future employment and continuing to support the local winemaking industry,” Petty said.
The global decline in commercial wine consumption, rising costs, and under-utilised capacity at the site were factors in the decision. It will close by mid-2024.
Karadoc began operating in 1973 and currently makes wine for TWE’s 19 Crimes, Lindeman’s, Wolf Blass, and Yellowglen brands.
Petty said the brands will be made with winemaking partners Zilzie Wines and Qualia and at TWE’s Barossa winery in South Australia.
Petty also announced the company will divest its commercial vineyards in Lake Cullulleraine (north-west Victoria) and Yankabilly (south-west New South Wales).
“A number of factors contribute to our shifting vineyard footprint including changing consumer trends and wine preferences as well environmental changes such as higher temperatures and reduced access to water.
“This has meant divesting some of our vineyard assets but also looking at opportunities to expand our footprint in new locations for future growth.
“We continually review our global vineyard assets to ensure they’re in the best possible places to grow our premium and luxury portfolio,” said Petty.
In May, CEO Tim Ford said Treasury Premium Brand’s operating model and organisational structure would be reviewed in the framework of the business’s future scale. Since then it has sold water licences and vineyards.
“Last year we acquired Beenak Vineyard in Victoria’s Yarra Valley, as well as Château Lanessan in Bordeaux, France and we hope to share further updates in this space soon,” he said.
