By Amy Looker
Yarra Valley-based winery, Sticks, has been earmarked for sale by its parent company Brand New Vintage (BNV) in an agreement that will see BNV lease back the brand and its assets in a bid to reduce the company’s debts.
As part of the arrangement, BNV will sell off its Yarra Valley winery and vineyards, along with the Sticks trademark and intellectual property to an as yet un-named buyer.
However, it will retain all bulk wine and stock on hand, as well as leasing back the Sticks brand from the purchaser for a 25-year period, with the option of renewing for another 25 years.
It will also lease back the Sticks winery, cellar door facility and vineyards for a three-year period.
The deal does not affect BNV’s other wine brand, One Planet, which has a strong environmental focus.
BNV chairman, Graham Keys, said the sale and lease back of Sticks allows BNV to clear 100 per cent of its debt.
“Going forward, this will allow BNV to ‘take stock’ of its brand business, looking at Sticks and One Planet separately,” Keys said in a statement.
“The Sticks brand continues to perform well, winning awards and receiving strong industry reviews. BNV will continue to employ the current Sticks winemaking, viticultural and sales and marketing team to manage and produce this premium brand.”
Keys also said that BNV will continue to review its corporate structure as a public listed company.