Australian Vintage Limited (AVL) has announced the sale of its 10,000 tonne Yaldara Winery in the Barossa Valley to 1847 Winery.
The Yaldara winery will continue to operate as a processing facility in alignment with a two-year agreement signed by the company, in order to ensure its high product quality is maintained, during which time AVL plans to explore various options regarding the long-term processing of its super-premium grapes from the Barossa, Adelaide Hills and adjacent regions.
CEO Neil McGuigan said that despite the sale, the company maintains its commitment to the Barossa Valley.
“This is demonstrated by the retention of our existing vineyard holdings, including our super-premium Barossa Valley Farms vineyard and long-term grower contracts for the supply of grapes from the Barossa and adjacent regions,” he said.
“The decision to sell Yaldara was made in line with the company’s current fundamental strategies – grow export business, build branded sales, with emphasis on the McGuigan, Tempus Two and Nepenthe brands, and be the lowest cost producer of quality wines. Simply put, we are realigning our asset base to ensure the long-term quality positioning of the business, with greater emphasis on the retention and acquisition of quality vineyards to enhance our super premium aspirations.”
Yaldara currently employs 16 staff on-site, and employment will be offered to some of these individuals by 1847 winery upon settlement.
Australian Vintage will retain two of its senior winemakers who will continue to produce the company’s wine on-site over the next two years.
The sale includes Yaldara’s portfolio of fortified products, which will become the property of 1847 Winery upon settlement.
“The Yaldara winery and brand was sold for $15.5 million Australian dollars. The net funds from the sale of the winery and brand will initially be used to reduce our debt,” McGuigan said.
Australian Vintage will continue the production and sale of its portfolio of table wines for the next two years.
Settlement, which is subject to 1847 obtaining a liquor licence for the winery, is expected to occur by December.