Australian Wine Holdco (AWL) says merging Accolade Wines and Pernod Ricard’s ANZ and Spanish wine businesses into one company will create one of the world’s largest wine companies.
The creation of Vinarchy (Vin - the French word for wine, Archy - from the Ancient Greek word for leadership) will have operations in multiple countries, employ around 1600 people, and generate annual sales of more than $1.5 billion.
AWL is a consortium led by Bain Capital that acquired both companies last year, with the Pernod Ricard deal just signed off last month.
Vinarchy will be led by executive chair, Ben Clarke, who has been in a similar role at Accolade since September last year, until a CEO is appointed. Clarke said Vinarchy could lead the wine category.
“We will be a dedicated wine company, with scale, capability, reach, resources, talent, and an exceptional portfolio of leading brands. We want to redefine wine.
“The global wine industry faces serious structural challenges. Global wine consumption has been declining for years, driven by changing consumer preferences and a shift to lower-alcohol drinks.
“Vinarchy will be bold and imaginative in meeting these challenges. With our enhanced scale, brand investment program, innovation capability and industry-leading talent, we believe can meet many of the challenges that the industry faces,” Clarke said.
Vinarchy has 11 wineries in Australia, New Zealand, South Africa, and Spain, producing more than 32 million 9LE cases annually, and owns Berri Estates, the largest winery in the Southern Hemisphere.
Brands include the three global pillars of Hardys with combined annual consumer sales of more than $2 billion in 2024 – the number two Australian wine brand globally, Campo Viejo – the number one Rioja wine brand in the world, and Jacob’s Creek – in the top 10 most valuable wine brands in the world.
Vinarchy will hold the number one market position in New Zealand with Stoneleigh, Brancott Estate, and Mud House.
Australian brands Grant Burge, Jam Shed, and Petaluma and a range of fine wines from all regions including St Hugo, St Hallett, Orlando, Church Rd, Ysios, and Tarsus round out the portfolio.
But Clarke told The Australian Financial Review around one third of the portfolio will be cut over the next 18 months to two years.
It currently has 150 brands that will reduce to around 100 so it can focus on its more recognised labels like those mentioned above.
“We can see a few waves getting it to about 100. Obviously, it’s a global business, and we will do it by geography and by brand,” Clarke said.
In the first round of cuts, Beaumont, &Then and Brooke James in Australia, and Trackers Crossing in the US. The brands represent about four per cent of overall revenues. Dozens of brands to be cut are private label brands that the company makes for supermarkets and liquor retailers around the world.
The company has been in the planning since July last year. Pernod Ricard will continue to distribute the Pernod Ricard Winemakers portfolio to help ensure a smooth transition.
Accolade Wines employees will retain their current roles and move across into the new business, while a “significant majority” of Pernod Ricard employees will join them.
We will be a dedicated wine company, with scale, capability, reach, resources, talent, and an exceptional portfolio of leading brands. We want to redefine wine.
“The global wine industry faces serious structural challenges. Global wine consumption has been declining for years, driven by changing consumer preferences and a shift to lower-alcohol drinks.
“Vinarchy will be bold and imaginative in meeting these challenges. With our enhanced scale, brand investment program, innovation capability and industry-leading talent, we believe can meet many of the challenges that the industry faces,” Clarke said.
