Latest news with #Vinarchy
Yahoo
05-06-2025
- Business
- Yahoo
Vinarchy sets out winemaking investment plans
Vinarchy has unveiled a plan to 'realign and strengthen' its winemaking operations in Australia. The wine major said it will create two winemaking "hubs" in South Australia. The Hardys owner will have its global corporate headquarters in Adelaide. Under the plans, Vinarchy will invest A$30m ($19.5m) into its Rowland Flat site, establishing it as a centre of excellence for 'premium and sparkling wine'. Vinarchy's Berri Estates business will become its primary commercial winemaking, packaging and warehousing hub. Winemaking at the company's St Hallett winery in the Barossa and its Tintara winery in McLaren Vale will move to Rowland Flat for the 2026 and 2027 vintages, respectively. Vinarchy chief supply officer Joe Russo said: 'Adopting this twin-hub structure at Berri Estates and Rowland Flat allows us to consolidate our resources and expertise, strengthening the business and ensuring we remain competitive in the face of ongoing challenges in the global wine market. 'Both St Hallett and Hardys are critical brands for Vinarchy and we recognise the rich local history they have in the Barossa and McLaren Vale. While our winemaking will move, our commitment to quality wines, local sourcing and premium cellar door experiences for these brands do not change,' Russo said. Vinarchy said these changes 'may create uncertainty' for team members. 'Where roles are affected, we are committed to supporting our teams through redeployment opportunities to other locations in many cases, or, where necessary, redundancy and outplacement support,' Russo added. It did not disclosed how many positions could be affected. Vinarchy was formed after Accolade Wines' owner, Australian Wine Holdco, completed the purchase of a clutch of wine assets from Pernod Ricard in April. The new company combines Accolade's assets with the Australian, New Zealand and Spanish wine operations formerly owned by Pernod. Its assets comprise wines from three different origin countries, including Jacob's Creek from Australia, Brancott Estate, Stoneleigh from New Zealand and Campo Viejo from Spain. The group produces wines in Australia, New Zealand, Spain and South Africa, with its sourcing also spanning regions in Italy, Argentina, France, the US and Chile. Last month, it emerged the business intends to cut brands from its portfolio that make up around 4% of its revenues. The Australian Financial Review indicated up to 50 brands could be axed. "Vinarchy sets out winemaking investment plans" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
04-06-2025
- Business
- ABC News
Wine giant's shock closure of Banrock Station cellar door end of a 'fantastic marriage'
Global wine giant Vinarchy will close a renowned cellar door in Australia's largest wine grape growing region as it consolidates its operations. Banrock Station, located in South Australia's Riverland, will close its cellar door and restaurant alongside Rolf Binder near Tanunda in the Barossa Valley. The last day of service at both cellar doors is expected to be towards the end of June. The decision comes just months after international wine brands Accolade and Pernod Ricard Wines merged to create Vinarchy, promising "innovation" in global winemaking. The company said the decision would create "uncertainty" for team members employed at both sites, but committed to supporting staff in the transition. Chief supply officer Joe Russo said support would include redeployment opportunities to local locations, or redundancy and outplacement support "where necessary". The company said viticulture and vineyard operations would remain at both Banrock Station and Rolf Binder sites with no impact on those teams. The company has also invested $70 million in its Berri Estates site, the largest winery in the Southern Hemisphere, to turn the facility into Vinarchy's primary commercial winemaking, packaging and warehousing hub. Winemaking at St Hallett in the Barossa and Hardy's Tintara in McLaren Vale will be shifted to Vinarchy's Rowland Flat site by the 2026-27 vintages at a cost of $30 million. "These important changes represent Vinarchy's commitment to building a stronger winemaking footprint in South Australia," Mr Russo said. Vinarchy produces more than 32 million cases of wine and turns over more than $1.5 billion in net sales revenue annually. The imminent closure of Banrock Station's public operations has raised questions about what impact the move will have on local tourism and the environment. Tony Sharley was involved in the foundation of Banrock Station, including the cultivation of the site's globally recognised Ramsar wetlands, before stepping away in 2009. Mr Sharley said he was disappointed the experiences would be coming to an end. "It's quite clever in a way that as a visitor experience, it brought wine lovers to nature, and it brought nature lovers to wine," he said. "It was a fantastic marriage." Mr Sharley called Banrock Station's former owners Hardy Wines' original decision to mix wine with nature "a unique piece". "It was very courageous back in the day for a company … to create a cellar door overlooking a wetland and then building a wine brand around its care for the environment," he said. The wetlands surrounding the winery have been a drawcard for visitors as part of the experiences offered by the brand. In 2002, the area was made a Ramsar site of international importance due to its significance for wildlife and biodiversity. The Ramsar Convention means the Banrock Wetlands' ecological character must be conserved and meet Australian Ramsar management principles. A Vinarchy spokesperson said the company would continue its commitment to maintaining the wetlands as required by the convention, including environmental watering and drying cycles. "We will continue to consult with stakeholders regarding wetland conservation, including potential partnerships with environmental tourism organisations," a spokesperson said. Riverland MP Tim Whetstone labelled Vinarchy's decision to close Banrock Station a "day of reckoning for the region" and questioned the implications on the local economy. "The Banrock business, the wine brand, the wetlands and the destination into the Riverland has been widely regarded as a centre of excellence," Mr Whetstone said. "It has had a significant association with environmentalists and environmental visitation that I think now will see people look elsewhere." The shift for the Vinarchy brand follows a tumultuous period for the Riverland wine industry as it grapples with challenging seasonal conditions and global oversupply. "I would've thought that the Banrock brand and the facility would have been a really good working piece of diversity in what is a very ailing industry," Mr Whetstone said.
Bloomberg
02-06-2025
- Business
- Bloomberg
Bain-Backed Group Seeks $454 Million Loan for Winemaker Vinarchy
A consortium called Australian Wine Holdco Ltd. that includes Bain Capital and Sona Asset Management Ltd. is seeking an A$700 million ($454 million) loan for a winemaker they acquired last year, people familiar with the matter said. Commonwealth Bank of Australia has underwritten the financing for Vinarchy, a new entity created via the merger of Accolade Wines and Pernod Ricard SA 's former wine division, the people said, who asked not to be identified discussing a private matter. The bank is tapping other financiers to participate in the syndicated borrowing with a tenor of three years, comprised of term and revolving credit tranches, they added.
Yahoo
15-05-2025
- Business
- Yahoo
Industry veteran takes helm at Vinarchy
The recently established wine company Vinarchy has appointed beverage industry veteran Danny Celoni as CEO, it announced today (15 May). Vinarchy came into existence last month when the owner of Accolade Wines purchased a clutch of wine assets from Pernod Ricard. Celoni assumes the chief executive role in August. He has had a varied career in the drinks sector, having spent 18 years at Diageo across various executive roles in the Asia Pacific region and more than three years as CEO of PepsiCo's Australia and New Zealand unit. Most recently, Celoni spent three years as CEO of Melborne-based Carlton and United Breweries (CUB), a subsidiary of Asahi Group. "I believe Vinarchy is well positioned to play a leading role in the future growth and expansion of the wine category. Our rich heritage, combined with our established brands, capabilities, and unwavering commitment to customer and consumer centricity provides an exceptional platform for driving core category growth, differentiated innovation and value creation," Celoni said. Executive chairman Ben Clarke added: "[Celoni] is a leader who champions a growth mindset and has a strong track record in driving transformational growth and category leadership through exceptional customer relationships. Danny is the right person to lead our business as we capture the opportunities as a global wine leader." Vinarchy combines the assets of Accolade Wines with the Australian, New Zealand and Spanish wine operations formerly owned by Pernod Ricard, which were acquired by Accolade owner Australian Wine Holdco Limited (AWL) earlier this month after a deal was announced last year. AWL describes itself as 'a consortium of international institutional investors', made up of funds from private-equity firms Bain Capital, Sona Asset Management, Samuel Terry Asset Management, Intermediate Capital Group and Capital Four. Vinarchy says it has A$1.5bn ($960m) in annual net sales revenue,1,600 staff and operations in multiple countries. The company now has 11 wineries in Australia, New Zealand, South Africa, and Spain, producing more than 32m nine-litre cases annually. Earlier this month, Just Drinks learnt Accolade Wines intended to cut of a number of wine brands following the creation of Vinarchy. Earlier this month, this publication understood the Australian wine business planned to offload brands which make up around 4% of total revenues. "Industry veteran takes helm at Vinarchy" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Maverick
11-05-2025
- Business
- Daily Maverick
Multibillion-rand global company acquires two South African wines
Vinarchy. The name lands somewhere between a Roman emperor and a Bond villain. But behind the bold branding lies a multinational wine group with serious ambitions. The name, a hybrid of 'vin' (French for wine) and 'archy' (Greek for leadership), signals both its product and its plan: a global structure with wine at the centre. The freshly minted R18-billion conglomerate is the result of a merger between Accolade Wines and Pernod Ricard's Australian, New Zealand and Spanish wine assets. At a glance, Vinarchy is the kind of corporate Frankenstein that makes traditionalists twitch: 11 wineries across four continents, more than 1,600 employees, and an empire of brands that includes Hardys, Campo Viejo, Jacob's Creek, and the Southern Hemisphere's largest winery, Berri Estates. Foreign taste for local terroir Vinarchy's South African acquisitions are no outlier. Dr Mesias Alfeus, senior lecturer at Stellenbosch University's department of statistics and actuarial science and co-creator of the South African Fine Wine Index (SAFW10), said international appetite for SA wine estates was growing in Europe and North America. 'This is likely driven by the comparative value South African wines offer, their growing international recognition, and the underlying asset appeal of land and heritage brands in the Cape Winelands,' said Alfeus. He added that foreign capital wasn't necessarily a bad thing: '[It] can bring much-needed infrastructure upgrades, access to global markets, and technical expertise.' But it comes with a risk: 'There are legitimate concerns about the potential loss of local identity and the risk of profit flows being externalised rather than reinvested in local communities and ecosystems,' noted Alfeus. Dr Erna Blancquaert, a viticulture researcher and lecturer at Stellenbosch University, echoed this optimism. 'Conglomerations of big wine businesses can be beneficial,' she said. 'Big wine companies have access to markets, distribution channels and shelf space which may not have been there prior.' Grapes and gains South Africa offers the appealing combination of a favourable climate, a rich wine heritage and lower production costs. 'We have some of the oldest viticultural soils,' said Blancquaert. 'Our unique landscape — proximity to the ocean and the presence of mountains — aids in creating microclimatic pockets which help with slow ripening of grapes.' As much as taste is a consideration, economics also comes into play. Compared to Australia, Europe or the US, South Africa is cheap to farm, especially when it comes to labour. 'Labour accounts for 60% of any vineyard's operating costs, and in the South African context, we have sufficient labour,' said Blancquaert. 'In Australia, labour is very expensive and it has resulted in producers looking at mechanisation.' Bottling identity Vinarchy posits that scale won't erase identity. 'South African wine is an important category for our retail customers, particularly in Europe and the UK,' said Ben Clarke, Vinarchy's executive chairperson. 'Flagstone and Kumala cater to that market. Our brands will continue to have their own identities under Vinarchy, with the benefit of being part of a global network.' He points to Flagstone's history as an example: 'Flagstone has its own special history as a former De Beers dynamite factory, today blending the site's industrial heritage with the art of winemaking.' However, the balance between local authenticity and corporate expansion is delicate. 'The success of a multinational model will depend heavily on how sensitively and sustainably it is executed,' said Alfeus. 'If companies like Vinarchy retain the distinctiveness of the terroir and support local talent and infrastructure, they can become important vehicles for global visibility and capital inflow.' If the model starts stripping value or homogenising, he added, it could undermine the character that made South African wine stand out. Bottles for billionaires and the bargain bin Vinarchy's portfolio, where fine wines like St Hugo sit alongside crowd-pleasers like Jam Shed, spans prestige and mainstream appeal. 'Through our global distribution network, we are incredibly proud to share our wines in almost every corner of the world,' said Clarke. 'Our portfolio has something to offer everyone and every hip pocket, from premium fine wine to some of the world's most popular global brands.' This range mirrors a growing trend in South African wine: premiumisation. 'More producers are focusing on smaller volumes with higher quality, terroir-driven wines,' said Alfeus. 'The international market is beginning to reward this, which in turn supports the idea of fine wine as an investable asset, as we explored through the SAFW10.'
