Southcorp Wines and Matthew Clark have announced they are to enter a long-term strategic alliance, in an attempt to transform Southcorp's on-trade business in the UK.

The deal will see Matthew Clark, through its Grants of St James's Wines and Wholesale divisions, represent the Southcorp brands, Lindemans, Rosemount Estate and Penfolds to the UK on-trade. Lindemans, Rosemount Estate, Penfolds and Seaview will join Southcorp's existing regional wines Wynns Coonawarra Estate, Seppelt, and James Herrick, all available through Matthew Clark Wholesale's Wine list.

Mario Micheli, president of Southcorp Europe said: "This agreement means that Matthew Clark will be able to offer its customers the best of the wines from Australia. Matthew Clark will have a range of wines across all varieties, styles and price points. Matthew Clark will be able to offer a world-class selection of wines.

"Matthew Clark will bring its unique set of skills in the presentation of our wines to what is seen as one of the more difficult channels in the wine trade. We have an opportunity to achieve a wider and more effective market reach through the concentrated effort of the two companies."

Peter Aikens, chief executive of Matthew Clark plc added: "Australian wine sales are booming and the Southcorp portfolio features the very best premium wines and Australia's strongest brands. We will be the natural choice for anyone looking for top quality Australian wines and this offering strengthens our proposition for existing customers as well as attracting new customers to our business."

The alliance follows the merger of Southcorp Wines with Australia's premier family-owned winery, Rosemount Estates. This merger created Australia's largest premium wine producer and also Australia's largest exporter. Matthew Clark is the largest supplier of wines to the on-trade. Its branded division, Grants of St James's Wines, is the largest supplier to the UK on-trade, accounting for over 10% of the market. Its Wholesale division, Matthew Clark Wholesale, supplies over 19% of the market's requirements.