Treasury to close two wineries

By Andy Young

Treasury Wine Estates has announced further changes to its 'supply chain optimisation', with the closure of two wineries.

The Matua Auckland winery, packaging and cellar door site and the Great Western winery in Victoria will close. TWE said the company's New Zealand wine production will be consolidated into the Matua Marlborough winery. Although the Great Western winery will be closed that site will be maintained while the company considers its operational future, which could include a possible sale.

Bob Spooner, chief supply officer at TWE, said: "Over the last two years, TWE has completed a multi-million dollar expansion of the Matua Marlborough winery in one of New Zealand’s internationally renowned winemaking regions. It is a state of the art facility capable of handling the vast majority of TWE’s New Zealand wine making requirements, so it makes sense to simplify and consolidate our production into one operation.

“In Australia, the size and location of the Great Western winery means it is both under-utilised and increasingly non-viable as a production facility, so we are ceasing operations and moving production into other wineries in TWE’s Australian wine production network in order to reduce costs and remove unnecessary complexity.”

TWE also announced that the changes associated with this announcement include:

• The closure of the Great Western cellar door by the end of June 2016;
• The sale of surplus vineyard land in the Great Western and Yarra Valley regions in Victoria, Australia following the 2016 Vintage;
• The expansion of existing third party processing for all New Zealand, North Island grapes; and,
• The establishment of third party packaging arrangements for New Zealand’s domestic market requirements.

TWE added that it is adamant that the changes will not impact any of its brands or existing supply contract arrangements with grape growers.