Treasury Wine Estates has agreed to offload wine brand Seppelt, months after announcing plans to “simplify” its portfolio of brands.
The Australia-based wine group will sell Seppelt to Aaron Drummond, the co-owner and CEO of Victoria-based winery Stonier, and partners.
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In a statement today (21 September), TWE said the deal includes the Seppelt brand, the Great Western winery and the Drumborg vineyard near Portland in southwest Victoria.
Financial details of the transaction were not disclosed.
The sale keeps Seppelt’s winemaking operations under “Victorian ownership”, the company added.
Angus Lilley, the MD of TWE’s operations in Australia, New Zealand and Europe, 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. Its wines, heritage and place in the history of Australian wine are at the heart of what makes Seppelt special, and Aaron and his team are well placed to carry that forward.”
Seppelt traces its origins to 1851, when Joseph Seppelt established Seppeltsfield in South Australia’s Barossa Valley. The Great Western winery was founded in 1865 and became part of Seppelt in 1918.
The brand has been part of TWE’s portfolio since 2011, following the corporate demerger of Foster’s Group. Seppelt wines are sold primarily in Australia, as well as in markets in Asia and Europe, the company told Just Drinks.
Drummond 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.”
The deal follows the strategy outlined at TWE’s June investor day, when the Penfolds owner said it would explore the sale of “non-core brands and assets” to create a “more focused brand portfolio and a simplified production footprint”.
The group said at the time it was aiming to cut its number of brands from 76 to less than 30. It also confirmed at the time it was launching a review of its business in the Americas.
TWE sold a winemaking facility in California to drinks co-packer Mercenary Premier.
The Seppelt transaction is expected to be completed next month.
TWE said it is in talks with employees at Seppelt sites. “There’s just over a dozen roles impacted however some are close to retirement and others may have an opportunity with the new owners but that will be up to those parties to determine roles and interest,” a TWE spokesperson said.
