Treasury Wine Estates (TWE) has announced changes to its Karadoc commercial winery in Victoria, Australia, meaning the site will close by mid-2024. TWE’s wine brands will continue to be made locally, however.
The company says a number of factors led to the decision including a global decline in commercial wine consumption, rising costs and under-utilised capacity at the site.
“Making the decision to close a site is something we take very seriously and is a last resort after we’ve looked at all other possible options. We’re committed to assisting our team members to find future employment and continuing to support the local winemaking industry,” TWE chief supply officer Kerrin Petty said.
The Karadoc winery has been in operation since 1973 and currently makes wine for TWE brands including 19 Crimes, Lindeman’s, Wolf Blass, and Yellowglen. These brands will continue to be made with long-standing local TWE winemaking partners Zilzie Wines and Qualia, and at TWE’s Barossa winery in South Australia.
The company also plans to divest its commercial vineyards in Lake Cullulleraine (north-west Victoria) and Yankabilly (south-west New South Wales).
“We continually review our global vineyard assets to ensure they’re in the best possible places to grow our premium and luxury portfolio,” said Petty.
“A number of factors contribute to our shifting vineyard footprint including changing consumer trends and wine preferences as well environmental changes such as higher temperatures and reduced access to water.
“This has meant divesting some of our vineyard assets but also looking at opportunities to expand our footprint in new locations for future growth.
“Last year we acquired Beenak Vineyard in Victoria’s Yarra Valley, as well as Château Lanessan in Bordeaux, France and we hope to share further updates in this space soon,” he said.
