Treasury Wine Estates (TWE) has agreed to sell Seppelt to Stonier CEO and co-owner Aaron Drummond and partners, the latest step in its plan to cut its brand portfolio from 76 to fewer than 30. The deal includes the Seppelt brand, the Great Western winery and cellars, and the Drumborg vineyard. No price was disclosed.
TWE flagged the sale of non-core brands and assets at its June investor day, alongside supply chain consolidation in Australia and California, as it narrows its focus to power brands Penfolds, DAOU and Matua and a small group of regional brands, including Wynns, Pepperjack and Coldstream Hills. The company said 10 brands are expected to generate about 90 per cent of group net sales within five years.
The divestment continues a longer run of asset sales. TWE sold four US commercial brands to The Wine Group for $100 million in 2021 and offloaded more than 1000 hectares of South Australian vineyards at Bordertown and Langhorne Creek in 2023.
Treasury Wine Estates managing director, Australia & New Zealand and Europe, Angus Lilley, said, “Seppelt holds a distinctive place in Australian wine, with a proud history shaped by generations of winemakers, viticulturists and people across the business and its local communities.
“For the people who know and love Seppelt, it’s a positive move that keeps the brand in Victorian hands.”
Stonier is based on the Mornington Peninsula and known for chardonnay and pinot noir. Seppelt adds a sparkling and fine wine business with significant vineyard and winery assets.
Stonier CEO and co-owner, Aaron Drummond said, said, “Seppelt has produced some of the greatest wines in this country. It possesses such important vineyards and an incredible history.
“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.”
Seppelt dates to 1851, when Joseph Seppelt established Seppeltsfield in the Barossa Valley. The Great Western winery was founded in 1865 and became part of Seppelt in 1918. Its underground cellars, known as The Drives, were first excavated by gold miners in 1868 and are the largest in Australia.
The brand is closely associated with the development of Australian sparkling wine, including sparkling shiraz. Drumborg was first planted in 1964 and is one of the state’s earliest cool-climate vineyards.
TWE said it is consulting with affected staff at Seppelt sites. It did not say how many employees are affected or whether they will transfer to the new owners.
