1
Treasury Wine Estates Branded wine sales* 2 Wine production* 2
Treasury Wine Estates (TWE) is Australia’s largest wine company, with the highest annual turnover but second in terms of wine production and case sales. In May 2011, TWE was spun out of the Foster’s brewery group and listed on the Australian Stock Exchange. It has an enviable portfolio of major brands, 54 in total, and owns or leases more than 8000 hectares of vineyard (the largest vineyard portfolio owned by a wine company in Australia°). Topping the brand list is Penfolds, which can lay claim to Australia’s most famous and
widely recognised brand. Global sales of TWE brands for the year ending June 2011 amounted to $1.76 billion. About $0.79b of that figure is derived from US net sales of, predominantly, the California-based Beringer, but also Penfolds’ luxury range, Stags Leap and Etude with strong support also from the emerging brands, such as Cellar No. 8 and Colores Del Sol Wines. Today, TWE is a different company than it was a couple of years ago, and could change again in another couple of years. Speculation leans towards the possible off-loading of Beringer. There is also an argument that certain brands lose out because there are simply too many great names in the portfolio. Would Wynns, Wolf Blass, Lindeman’s, Rosemount, Seppelt, Yellowglen, Leo Buring or any of the other 47 labels do better out of the group? TWE corporate communications manager Sue Rana provided the responses for this review, with a big emphasis on brand. TWE’s chief executive is David Dearie (pictured above), who took on the role in 2009 and has steered the company through its demerger.
2 David Dearie
Accolade Wines Wine production** 1 Case wine sales** 1
In tandem with Treasury Wine Estates, Accolade Wines has undergone substantial change in the past 18 months. In December 2010, Constellation Brands (CB) announced it was going to dispose 80 per cent of Constellation Wines Australia and Europe to Sydney-based CHAMP Private Equity (CHAMP). The deal was finalised on 31 January 2011.
Troy Christensen
Constellation disposing of these assets was not a surprise. However, the low value placed on them was just $290 million in total, with CB receiving $230m for the 80 per cent. Along with 1800 staff based in various parts of the world, CHAMP picked up Australian brands, including Hardys, Banrock Station, Houghton, Omni, Berri Estates and several others. The Kumala brand from South Africa was also included in deal, along with Echo Falls from California and the mutable country brand Stowells, sold only in the UK. The acquisition also included 50% of the UK’s largest drinks distributor, Matthew Clark and a state-of-the-art bottling facility, which must rank as one of the best in the world. The following figures were sourced from the CB financial 2011 year, which ended in February, so is, in effect, the 2010 calendar trading year. Sales for that period were US$774.7m ($716.5m) down 17% from the previous year (or
TRUCK & MACHINERY
THE AUCTION YOU’VE BEEN WAITING FOR WED 16 MAY 10:30AM ACST NARACOORTE SHOWGROUNDS SMITH ST, NARACOORTE SA
John Deere 5720, 5820, 6210, 6320 tractors
New Holland TN75 FEL, TN75DA, TS90FEL, TSA100FEL
Pellenc 3400 & Tow UR 900-565 grape harvesters
Fendt 280P tractors
TRACTORS, GRAPE HARVESTERS, QUAD BIKES & VINEYARD EQUIPMENT FOR SALE Major fleet rotation auction on behalf of Treasury Wine Estates, featuring: • John Deere, Fendt and New Holland Tractors and Harvesters with low hours • Quad Bikes and Trailers • Viticultural equipment, including Vine Sprayers and much more Highly regarded, this machinery is in excellent condition, so don’t miss out on your chance to land some exceptional used equipment for your operation. Jason Doig M: 0400 782 460 E: jason.doig@manheim.com.au
Allan Turner M: 0407 494 388 E: allan.turner@manheim.com.au
Naracoorte Showgrounds Smith St, Naracoorte SA 5271
Tue 15 May 10:00am - 4:00pm Wed 16 May 8:00am - 10:30am
manheim.com.au
April 2012 – Issue 579 TM_ADE_AU&NZ GrapeGrower & Winemaker_180x90.indd 1
www.winebiz.com.au
The Australian & New Zealand Grapegrower Winemaker 17 15/03/2012& 9:58:03 AM