Australian Vintage has sold its 10,000 tonne Yaldara Winery and the Yaldara brand, but not the vineyard, to 1847 Winery for $15.5 million.
The funds from the sale of the winery and brand will be used to reduce the company's debt, according to Neil McGuigan, CEO of Australian Vintage.
According to McGuigan, the decision to sell Yaldara is in line with the company’s strategies of growing its export business, building branded sales, with emphasis on the McGuigan, Tempus Two and Nepenthe brands, and being the lowest cost producer of quality wines.
“Simply put, we are realigning our asset base to ensure the long-term quality positioning of the business, with greater emphasis on the retention and acquisition of quality vineyards to enhance our super premium aspirations,” said McGuigan.
The company's commitment to the Barossa Valley remains, he says.
The deal is subject to 1847 obtaining a liquor licence for the winery, but is expected to occur in November or December 2014.
The company said the Yaldara winery will continue to operate as a processing facility for two years as Australian Vintage explore other options for the long term processing of its super premium grapes from the Barossa, Adelaide Hills and adjacent regions.
Yaldara currently employs 16 staff on-site, and employment will be offered to some of these individuals by 1847 winery upon settlement. Australian Vintage will retain two of its senior winemakers who will continue to produce the company’s super premium wine on-site over the next two years.
1847 Winery has bought the Yaldara Winery and brand off Australian Vintage.
