The Australian wine company, Lion Nathan, has said it is to close its Tatachilla winery in the McLaren Vale in South Australia, as part of a restructuring of its wine operations.
The restructuring programme is aimed at cutting costs. The winery is to close during the coming six months and the closure will result in 12 job losses.
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Lion Nathan acquired the Tatachilla and St Hallett brands via its takeover of Banksia Wines. However, the company is to continue to produce wine under the Tatachilla brand with production being switched to its St Hallett and Knappstein wineries in the Barossa Valley and Clare Valley respectively.
The company said that it was closing the winery because it was set on a main street in McLaren Vale, boxed in on the remaining three sides by other established businesses and thus had no room to grow.
Ultimately the company also wants the winery to be vineyard based, which it is not at present.
Chief wine maker Michael Fragos will remain, and for the interim period, he will be based wherever production is taking place
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By GlobalDataThe move in no way reflects any change of value to the Group of the Tatachilla brand within its portfolio of premium wines, the company said.
