Treasury Wine Estates to sell Seppelt to Stonier CEO
The sale transfers Seppelt, its Great Western winery and Drumborg vineyard to Victorian ownership as Treasury Wine Estates reduces its brand portfolio.
AUSTRALIA – Treasury Wine Estates (TWE) has agreed to sell Australian wine brand Seppelt to Aaron Drummond, chief executive and co-owner of Victoria-based winery Stonier, and partners as part of its strategy to simplify its portfolio.
The transaction includes the Seppelt brand, the Great Western winery and the Drumborg vineyard near Portland in southwest Victoria. Financial terms were not disclosed.
TWE said the sale will keep Seppelt’s winemaking operations under Victorian ownership. The transaction is expected to be completed next month, subject to the relevant conditions.
Angus Lilley, managing director of TWE’s Australia, New Zealand and Europe operations, said the transaction would maintain the brand’s connection with Victoria.
“For the people who know and love Seppelt, it’s a positive move that keeps the brand in Victorian hands. Its wines, heritage and place in the history of Australian wine are at the heart of what makes Seppelt special, and Aaron and his team are well placed to carry that forward.”
Seppelt traces its origins to 1851, when Joseph Seppelt established Seppeltsfield in South Australia’s Barossa Valley. The Great Western winery was founded in 1865 and became part of Seppelt in 1918.
TWE has owned Seppelt since 2011, following the demerger of Foster’s Group. The brand’s wines are primarily sold in Australia, with additional markets in Asia and Europe.
Drummond said the acquisition would build on Seppelt’s established position in Australian wine.
“Seppelt has produced some of the greatest wines in this country. It possesses such important vineyards and an incredible history,” Drummond said.
“To be able to build on that tradition and reputation as a pioneer and leader for Australian sparkling and fine wine, is an absolute privilege.”
TWE continues portfolio simplification
The sale follows TWE’s strategy announced at its June investor day to dispose of “non-core brands and assets” and create a more focused brand portfolio and simplified production footprint.
The company said it aims to reduce its number of brands from 76 to fewer than 30. It has also begun a review of its Americas business and sold a California winemaking facility to drinks co-packer Mercenary Premier.
TWE is consulting employees at Seppelt sites. A spokesperson said: “There’s just over a dozen roles impacted however some are close to retirement and others may have an opportunity with the new owners but that will be up to those parties to determine roles and interest.”
The Seppelt transaction is the latest step in TWE’s portfolio restructuring and will transfer the historic brand and its Victorian production assets to new ownership.
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