TWE puts Riverland wine estate up for sale
Treasury Wine Estates is seeking a buyer for its Markaranka property in South Australia’s Riverland, one of the nation’s hardest-hit regions by climate change.
Treasury Wine Estate has listed for sale its giant Markaranka property in the Riverland of South Australia, one of Treasury’s largest. It covers nearly 1,300 hectares of contiguous land with 157ha under established vines.
Riverland has been one of the areas hardest hit by climate change, where water costs have soared forcing many growers to uproot their vines.
As db reported, Riverland growers have been “at breaking point” for some time. Earlier this year the area’s vine producers lobbied the state government for emergency aid to help them combat the crisis. In a letter to the authorities in Adelaide they suggested that without such aid “Riverland would cease to exist” as a viticultural region.
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Reworked strategy
As part of its reworked business strategy Treasury is The Penfolds is pruning its supply base, freeing up capital tied in vineyards as it keeps premium labels such as Penfolds at the centre of its strategy.
Meanwhile, one of the country’s biggest drinks retailers, Endeavour, has put on the market its highly regarded Oakridge Wines in Victoria along with South Australian assets including Chapel Hill.
Endeavour’s shareholders have been hit as the company’s share price declined. The listed operator of bars and bottle shops is seeking to exit capital-heavy wine production at a time when investors are questioning returns from those assets.
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