Treasury Wine Estates (TWE), an Australia-based global winemaking and distribution business, has signed agreements to provide wine production and packaging services for Accolade Wines United States (US).
As part of the agreements, TWE will undertake contract packaging at its Napa Bottling Centre and production of Accolade Wines at TWE's Asti winery.
The multi-year packaging contract will commence in November 2013 and the production arrangements at Asti will commence with the 2014 vintage.
The arrangements are a first of their kind for TWE in the US and they build on the benefits both parties have seen from the 2012 reciprocal packaging agreements initiated between TWE and Accolade in Australia and the UK.
They underpin TWE's longer-term supply optimization strategy aimed at better utilization of TWE's supply chain assets around the globe.
TWE chief supply officer Stuart McNab said the new arrangements would use capacity in TWE's US production network.
"This is a great outcome for both parties. TWE's increased focus on maximising efficiencies in our global supply network has enabled us to leverage spare capacity and generate additional financial returns for our US operations," he added.
"These contracts will help TWE "win in the Americas" which is a key strategic focus for us in Fiscal 14."
