Yellow Tail owner puts 35 properties including 7,258ha of vineyards and land up for sale
Casella Family Brands, the owner of hugely popular wine brands such as Yellow Tail and Peter Lehmann Wines, has announced that it is putting some 7,258ha of vineyards and supporting land from 35 properties on the market, as the business realigns its strategy.
The Yellow Tail owner has announced its intention to sell 7,258ha of vineyards and supporting land from 35 properties across South Australia and New South Wales.
Business Australia reports that the land equates to roughly one 25th of the entire area of winegrape vineyards in Australia.
“The company will continue to source from grape-growers across NSW and South Australia, and the intended sale will not impact these longstanding relationships or contractual agreements in place,” the Casella family said in a statement.
“A long-term sale agreement will ensure Casella retains the wine grapes from these vineyards to ensure ongoing supply for its established brands.
“Some Casella-owned vineyards located in the Riverina and Barossa are not included.”
Vineyards included in the sale will hail from popular winemaking areas such as Barossa Valley, Clare Valley, Langhorne and Currency Creek.
John Casella said that the decision to put the vineyards on the market was taken after a lengthy period of review. He said the move will allow the family to focus on “setting the business up for long-term success”.
Sale proceeds will be re-invested into the company, he said.
Casella said the company was in a strong financial position, citing the record sales of its Yellow Tail brand during the coronavirus pandemic.
“While demand has stabilised, we are forecasting future growth due to ongoing investment in our brands supported by a strategic innovation pipeline,” he said.
“The intended strategic partnership will allow us to focus on strengthening our brands globally, and therefore deliver positive outcomes for the Australian wine industry.”
Last summer, Casella Family Brands welcomed the news of the UK’s free trade agreement with Australia.
Simon Lawson, General Manager of Casella Family brands, said at the time:
“As a family run business with an eye on the long term, this deal will renew our commitment to investing in the UK for our leading brand [yellow tail], our premium wines and our hub for the wider European market”. You can read more on the industry’s reaction to the trade deal here.