Accolade Wines and Treasury Wine Estates have agreed a tie-up that will see major efficiency savings, but also 175 redundancies.
The agreement between the two wine producers will involve Accolade Wines bottle for Treasury Wine Estates (TWE) in the UK and TWE bottle for Accolade Wines in Australia from January next year.
As a result of the new reciprocal bottling and packaging contracts, Accolade Wines will be closing its Reynella bottling and distribution facility in Adelaide, South Australia, and laying off 175 employees.
Around 20 of the redundancies relate to a separate arrangement where Accolade will outsource its Reynella warehousing and distribution to MacKenzie Hillebrand’s facilities at Outer Harbor in South Australia.
“We are working with Treasury and separately with MacKenzie Hillebrand on plans that we anticipate will see us fully transitioned by January 2013,” said Accolade chief executive Troy Christensen.
Speaking of the savings from the new agreement between the two wine producers, Christensen said it would strengthen the Australian wine industry by improving the efficiencies of both Accolade Wines and TWE.
“This ground-breaking agreement will enable each of us to secure economies of scale in each region,” Christensen said.
He also commented that the tie-up would see production at Accolade’s UK bottling facility – Accolade Park – increase by 30%.
Accolade Wines’ bottling plant in Bristol
Meanwhile, Stuart McNab, chief supply officer for TWE said the arrangements would utilise the best and most efficient assets of both companies.
“We have put a big focus on increasing efficiencies in our supply network and this new arrangement with Accolade will leverage these efficiencies by utilising spare capacity in our Australian facilities.”
Historically, TWE has used several service providers for wine packaging in England, but under the new partnership, the company will consolidate all UK packaging into Accolade Park, in Bristol.
The new arrangements will commence over the coming weeks with both companies increasing their volumes over a six-month period to meet full planned packaging volumes by January 2013.
Click here to read more about Accolade Wines packaging facility in Bristol, UK.