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Treasury Wine Estates purchases Coonawarra estate
Australian wine giant Treasury Wine Estates has confirmed the acquisition of Wetherall Coonawarra Vineyards in south-western Australia’s Coonawarra wine region for an undisclosed sum.
The settlement on the purchase was completed on 16 March, TWE revealed to dbHK, without disclosing the transaction amount. The purchase is “in line with TWE’s strategy to increase our access to premium fruit”, driven by increasing global demand for premium wines, said the company.
“The Wetherall property comprises 329ha of land, of which 283ha are vineyards planted primarily to Cabernet Sauvignon and Shiraz, with smaller areas of Chardonnay and Merlot vines. The vineyards produce high quality fruit which will be used to help meet TWE’s growing global demand for premium wines,” the company told dbHK.
This adds another Coonawarra estate to TWE’s existing portfolio aside from the region’s leading winery, Wynns Coonawarra Estate.
In addition to the vineyards, the purchase also includes water licences, a cellar door under lease, and other infrastructure. The company added that current employees at the winery will be offered on-going employment with TWE.
Last year, the company sold two of its vineyards in Hawke’s Bay and one vineyard in Clare Valley to Seppeltsfield.
Last year, the company reported a 37% increase in profit after tax riding on strong growth seen in Asia, whose earnings were up 48% to US$117 million, ahead of Americas’ US$100.4 million, and Europe’s US$24 million.
Full marks to Treasury for the investment back into the Australian vineyards. Picking the best vineyards in the best area’s will retain great fruit quality, consistency of flavour and better return to scale for Wynn’s with additional fruit to play around with and increase in volume for growth markets. Many people forget that Coonawarra was a predominately Shiraz growing area before the early 70’s when Cabernet sauvignon was planted to much success. We can’t forget our early pioneers of the vineyards.
Excellent acquisition!