143-year-old McWilliam’s Wines falls into administration

Founding member of Australia’s First Families of Wine and the owner of the Mount Pleasant wine brand, McWilliam’s Wines, has gone into administration following a “decline in business performance”.

The Riverina-based wine company, which has been owned by six generations of the same family, appointed KPMG as its administrators on 8 January.

The company produces its own wines under the McWilliam’s label as well as those made at the Mount Pleasant estate in the Hunter Valley.

McWilliam’s bought the Mount Pleasant estate, known for its Sémillon and Shiraz, in 1941. It also sources grapes from the Canberra, Hilltops and Tumbarumba regions in New South Wales.

In addition to its wines, McWilliam’s is also the Australian distributor of brands including Champagne Taittinger, Mateus, Henkell and Mionetto.

In a statement, Jim Brayne, chairman of McWilliam’s Wine, said: “We have not made the decision to enter into voluntary administration lightly.

“A number of factors have contributed to a decline in business performance, including evolving structural market dynamics and capital constraints.”

Gayle Dickerson, restructuring partner at KPMG, added, “The company will continue to operate as normal and we are working with the McWilliam’s family with the support of its employees while we work hard to try to preserve one of Australia’s oldest winemakers.

“We are seeking expressions of interest to recapitalise or acquire the Group to take this heritage brand forward in the future both locally and globally.”

The McWilliam family is descended from Samuel McWilliam, who emigrated to Australia from Northern Ireland in 1857. He planted his first vines in 1877 in New South Wales.

According to data from the Australian Securities and Investments Commission (ASIC) and published in the Australian Financial Review in January 2019, McWilliam’s recorded a 13% fall in revenue for the 2017-18 financial year, achieving AU$87.4 million.

The focus for KPMG remains on saving the company, with a meeting of McWilliam’s creditors scheduled for Monday 20 January.

It follows news of the wildfires in Australia, which since September 2019, have burnt an area the size of Ireland.

New South Wales, where McWilliam’s is based, has been particularly hard hit. However, with regards to wine production, damage has mainly been concentrated in the Tumbarumba area, while Adelaide Hills in South Australia has suffered the biggest losses in terms of vineyard damage.

Angus Barnes, executive officer of the New South Wales Wine Industry Association, told the drinks business that a number of vineyards have now been burnt in the Tumbarumba region, with authorities still assessing the damage.

It is unclear at this stage whether McWilliam’s has been affected by this.

Wine Australia chief executive officer Andreas Clark has said it would take several weeks to assess the impact of the bushfires on the wine industry.

However, when reviewing the fire maps, Wine Australia stated that a maximum of 1,500 hectares of vineyards, around 1% of Australia’s total vineyard area, are within the regions affected by the blaze. The majority of the vines affected are in Adelaide Hills in South Australia, which is reported to have lost a third of its vines, the equivalent of 1,100ha.

Those wishing to help the industry can do so by visiting a number of domestic fundraising campaigns, as well as buying from affected wine producers.

Initiatives include the Australian Red Cross and the Adelaide Hills Wine Fire appeal. Donations can also be made to Queensland’s Granite Belt Drought Assist via Facebook.

A list of support schemes, as well as fundraising events taking place around the world, will be published by the drinks business tomorrow.