Vinarchy invests $100m in South Australia winemaking overhaul
The Rowland Flat and Berri Estates, in the Riverland, Australia, are set for major upgrades as Vinarchy shifts its production. Meanwhile, the closure of Banrock Station and Rolf Binder’s cellar doors has drawn criticism from locals and environmentalists.
Vinarchy, the newly merged global wine entity formed from Accolade Wines and Pernod Ricard Winemakers, has announced sweeping changes to its Australian operations, including a AU$100 million investment in two winemaking hubs and the closure of key cellar doors. The company will establish Rowland Flat in the Barossa Valley as its centre of excellence for premium and sparkling winemaking, with Berri Estates in the Riverland becoming its primary commercial production and logistics site.
The AU$30 million Rowland Flat redevelopment will focus on advanced viticulture and high-end wine techniques, while Berri Estates, already the largest winery in the Southern Hemisphere, has received more than AU$70 million to further scale up packaging, warehousing and winemaking capabilities.
As reported by The Shout, chief supply officer Joe Russo said, “Adopting this twin-hub structure at Berri Estates and Rowland Flat allows us to consolidate our resources and expertise, strengthening the business and ensuring we remain competitive in the face of ongoing challenges in the global wine market”.
End of an era for Banrock Station and Rolf Binder cellar doors
Following the restructuring, Vinarchy will shutter the Banrock Station and Rolf Binder cellar doors and restaurants by the end of June. Though vineyard and viticultural operations at these sites will continue, the closures have drawn sharp local criticism.
As reported by ABC Riverland, Tony Sharley, who helped establish Banrock Station’s internationally recognised Ramsar wetlands, called the closure “disappointing”, describing the site as “a fantastic marriage” of wine and nature. He praised its pioneering approach to blending ecological stewardship with wine tourism, noting, “It was very courageous back in the day for a company… to create a cellar door overlooking a wetland and then building a wine brand around its care for the environment.”
Local MP Tim Whetstone echoed these concerns, calling it “a day of reckoning for the region”, adding, “The Banrock business, the wine brand, the wetlands and the destination into the Riverland has been widely regarded as a centre of excellence”.
Vinarchy has confirmed its ongoing legal responsibility for the Banrock Station wetlands under the Ramsar Convention, maintaining environmental watering and drying cycles and expressing interest in future partnerships with eco-tourism groups.
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Brand heritage, but new winemaking homes
While production is shifting, Vinarchy insists its regional wine identities will remain intact. Winemaking at St Hallett in the Barossa and Hardys Tintara in McLaren Vale will move to Rowland Flat for the 2026 and 2027 vintages, respectively. Long-term decisions on the physical futures of these heritage sites are still being determined.
According to a Vinarchy media release yesterday, “These wines will be made with the same grapes from the same regions, by the same winemakers, just at another winery,” said Russo, who also affirmed the continued importance of both St Hallett and Hardys to the company’s portfolio.
Vinarchy will now concentrate cellar door investment on its key brands: Jacob’s Creek, St Hugo, Hardys, St Hallett, Grant Burge, Katnook Estate and Petaluma.
Staff impact and future financing speculation
The transition, which will occur over 12 months, is expected to impact staff at affected cellar door sites. Russo said the company is “deeply mindful” of the human toll, pledging redeployment where possible, along with redundancy and outplacement support as needed.
Vinarchy remains publicly committed to its grape grower partnerships across South Australia, including the Riverland, McLaren Vale, Adelaide Hills, Barossa and Coonawarra.
Behind the scenes, however, questions are beginning to surface about the financial structure underpinning the Vinarchy consolidation. Bloomberg has reported that Bain Capital and Sona Asset Management, part of the consortium that created Vinarchy, are now seeking an AU$700 million syndicated loan, virtually the same figure they are understood to have paid for Pernod Ricard’s wine interests last year.
the drinks business has reached out to Vinarchy for further comment.
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