Treasury Wine Estates (TWE) has announced plans to close Karadoc, its commercial winery in north-west Victoria, by mid-2024.

TWE said the move to close Karadoc is in response to changes in the preferences of consumers and to enable TWE to focus on continued growth in its luxury and premium wine portfolios.

TWE’s Chief Supply Officer Kerrin Petty said that while Karadoc was able to remain operational throughout the pandemic the decline in consumption of commercial wine as well as rising costs had undermined the long-term viability of the winery.

“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,” Petty said.

“Globally, the wine industry is seeing consumers shift away from commercial wine (less than $10AUD a bottle). Over the coming years, we expect commercial volumes at Karadoc to continue to decline and volumes to be at around 60 per cent of the capacity that the site is built to process. Given 70 per cent of costs at Karadoc are fixed, processing less volume means the cost of running the site is substantially higher.

“Combine this with rising costs and unfortunately as a result, we’ve made the difficult decision to close our Karadoc winery from mid-2024, which is hard news to share with our loyal team, the local community and partners.

“We’re committed to assisting our team members to find future employment and continuing to support the local winemaking industry.”

The Karadoc winery has been in operation since 1973 and currently makes wine for TWE brands including 19 Crimes, Lindeman’s, Wolf Blass, and Yellowglen. TWE said around 60 staff will be impacted by the closure, while the wines that were made at Karadoc will now be made with longstanding local TWE winemaking partners Zilzie Wines and Qualia, and at TWE’s Barossa winery in South Australia.

“Our Karadoc teams have been making quality wines for 50 years and should be proud of everything they’ve achieved in that time. We’re privileged to have some of the best winemakers and producers in the world at this winery and we’re grateful for their contribution to the business and the broader wine industry,” Petty said.

As part of the Karadoc winery closure, TWE plans to list the site for sale and also plans to divest its commercial vineyards in Lake Cullulleraine (north-west Victoria) and Yankabilly (south-west New South Wales).

TWE said it remains focused on growing its premium and luxury wine portfolio and ensuring it has the right assets to deliver on its strategy.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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