Treasury Wine Estates to close Victoria winery
Penfolds owner Treasury Wine Estates has announced the closure of its Karadoc winery in Victoria, a “last resort” decision triggered by rising costs and a decline in commercial wine consumption.
Treasury announced the decision this morning, saying that the company plans to close the site by mid-2024.
Wine brands produced at the Karadoc commercial winery include 19 Crimes, Lindeman’s, Wolf Blass, and Yellowglen.
All of these brands will continue to be made by long-standing TWE winemaking partners Zilzie Wines and Qualia, and at TWE’s Barossa winery in South Australia, the company has said.
Kerrin Petty, Treasury Wine Estates chief supply officer, called the decision to close the winery a “last resort after we’ve looked at all other possible options”.
Victoria’s Karadoc winery has been in operation since 1973 and currently employs around 60 staff members. Perry said the company was “committed to assisting our team members to find future employment” following the site closure.
The company also plans to divest its commercial vineyards in Lake Cullulleraine (north-west Victoria) and Yankabilly (south-west New South Wales).
Perry said of the decision: “A number of factors contribute to our shifting vineyard footprint including changing consumer trends and wine preferences as well environmental changes such as higher temperatures and reduced access to water.
Last year Treasury Wine Estates acquired Beenak Vineyard in Victoria’s Yarra Valley and Château Lanessan in Bordeaux, France. The latest acquisitions were part of a move towards premiumising the company portfolio further. The decision to close the Karadoc winery has been triggered by rising costs and a decline in the global demand for commercial wines, highlighting the shift in focus towards the more premium end of the spectrum.
Luxury Australian wine brand Penfolds sits alongside Wynns from Coonawarra, Napa’s Stag’s Leap and California’s Beringer as part of TWE’s premium plus portfolio.