Australia’s Treasury Wine Estates (TWE) has announced plans to expand its footprint in New Zealand with its purchase of a vineyard in Marlborough.
The acquisition means the producer now holds 750ha of land in the region, where its other New Zealand vineyards are also located.
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Details around the deal and the former owner of the vineyard will remain undisclosed until the sale has been completed next year, subject to regulatory approval, TWE told Just Drinks.
The purchase of the vineyard situated at 4336 State Highway 63, Wairau Valley 7271, is expected to close in the first quarter of 2024.
TWE said it plans to use the “premium vineyard” to boost its supply of Sauvignon Blanc and Pinot Noir, and further develop its New Zealand Matua and Squealing Pig brands.
Last month, the group added Californian business Daou Vineyards to its roster through a $900m deal which could rise to $1bn under an earn-out clause.
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By GlobalDataIn 2022, TWE also bought the Beenak Vineyard in Yarra Valley, Victoria, Australia, and bagged a majority stake in the 390ha Château Lanessan winery in Bordeaux, France.
In May, TWE confirmed it was looking to divest assets amid a challenging market for entry-level wines. It closed Victorian commercial wine operation Karadoc winery in July.
In TWE’s full-year results, announced in August, net sales revenue declined 2.2% to $2.4bn, which the group attributed to premium portfolio volume declines in Treasury Americas and commercial portfolio volume declines in Treasury Premium Brands.
Commenting on the news, TWE chief supply and sustainability officer Kerrin Petty said: “The acquisition of the new vineyard, which includes its own water reservoir, is an important step in expanding our premium wine portfolio and ensuring we remain in front of evolving consumer preferences.
“Consumers love our New Zealand wines – particularly in the US where Matua is known as one of their ‘hot brands’. We want to keep making the wines that consumers love and with lighter varietals continuing to trend, this additional vineyard will ensure we can keep up with consumer demand – now and well into the future.”
