News

Treasury Wine Estates lines up winery closures

Most popular

The alcohol industry is about to become less sweet

Why a sale of Casella is no slam-dunk

How the sugar tax has transformed soft drinks

Pernod is back in Kentucky, but why did it leave?

The opportunity for no-alcohol in the on-premise

MORE

Treasury Wine Estates is to close a New Zealand winery and stop operations at an Australian site as part of its supply chain optimisation scheme. 

Treasury Wine Estates will close a winery in New Zealand

Treasury Wine Estates will close a winery in New Zealand

TWE announced plans to remove cost and complexity from its operations earlier this month in an effort to claw back an annual saving of around AUD50m (US$36m) by fiscal-2020. 

The company said yesterday that it will close its Matua Auckland winery, packaging and cellar door site, and consolidate its New Zealand wine production into the Matua Marlborough winery. In Australia, TWE intends to cease operations at its Great Western winery in Victoria, which will be maintained while the company "considers the operational future of the site", including a potential sale.

Bob Spooner, chief supply officer at TWE, said: “Over the last two years, TWE has completed a multi-million dollar expansion of the Matua Marlborough winery... It is a state of the art facility capable of handling the vast majority of TWE’s New Zealand wine making requirements, so it makes sense to simplify and consolidate our production into one operation.

“In Australia, the size and location of the Great Western winery means it is both under-utilised and increasingly non-viable as a production facility, so we are ceasing operations and moving production into other wineries in TWE’s Australian wine production network in order to reduce costs and remove unnecessary complexity.”

TWE said a "number of roles" would be impacted, adding: "The precise extent of these impacts is still being worked through as the company finalises the resourcing needs for its new production footprint."

The changes are not expected to impact any of TWE’s brands or existing supply contract arrangements with grape growers.

Earlier this month, TWE agreed to purchase most of Diageo's wine operations, including the Blossom Hill and Piat d'Or brands. 


Sectors: Wine

Related Content

Treasury Wine Estates to keep European bulk wine bottling in UK - ProWein 2019

Treasury Wine Estates to keep European bulk wine bottling in UK - ProWein 2019...

How did Treasury Wine Estates perform in H1 fiscal-2019? - results data

How did Treasury Wine Estates perform in H1 fiscal-2019? - results data...

Treasury Wine Estates to acquire French supply, production assets, sets sights on boosting brands in China

Treasury Wine Estates to acquire French supply, production assets, sets sights on boosting brands in...

Treasury Wine Estates starts phase two of savings programme

Treasury Wine Estates starts phase two of savings programme...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?