Maxwell Wines acquires Fox Creek after AU$10 million collapse

Maxwell Wines has bought fellow McLaren Vale producer Fox Creek out of administration to stop the historic winery falling into outsiders’ hands, says its general manager.

Last October, Fox Creek entered voluntary administration, citing “global disruptions from Covid-19, reduced tourism visitation, tariff issues in the China market and increased costs across the business” as the reasons behind its collapse, owning debtors more than AU$10 million.

Calling the winery “a mainstay of the McLaren Vale wine region for the past 30 years,” Fox Creek’s appointed administrator KPMG Australia said at the time, “We will be working with stakeholders to formulate a restructuring plan that achieves the most optimal outcome for creditors…. and to help ensure this iconic Australian business survives and thrives.”

Now Maxwell Wines has confirmed it has acquired Fox Creek for an unspecified sum.

Future of McLaren Vale

Jeremy Maxwell, general manager of Maxwell Wines, said the decision to acquire Fox Creek was “as much about community as it is about business”.

“This isn’t just about expanding our portfolio – it’s about preserving the future of McLaren Vale,” he said. “We’ve always believed that the strength of this region lies in its people, its land, and its legacy. Fox Creek Wines is a brand with deep roots here, and we’re proud to help ensure it remains in McLaren Vale hands.

“Our intention is to honour the history of the brand and continue to make its signature wines true-to-style,” Maxwell said.

At its core, the acquisition is “about keeping McLaren Vale wines in local hands, supporting the regional community, growers, and preserving the stories that define South Australian wine,” added Maxwell.

The McLaren Vale recently suffered a blow when winemaking was moved away from Hardy’s Tintara site in the region following the merging of Accolade Wine with Pernod Ricard Winemakers.

In June, db reported that Vinarchy, the new wine company formed following the merger, was drawing criticism for moving its production away from McClaren Vale. As part of its new operations, Vinarchy plans to 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. This means that winemaking that had previously taken place at Hardys Tintara in McLaren Vale will now move to Rowland Flat for the 2027 vintage.

Despite the move, Vinarchy says it remains committed to its grape grower partnerships across South Australia, including in the McLaren Vale.

Uptick in international acquisitions

Speaking exclusively to the drinks business, Jeremy Maxwell says there has “definitely been a noticeable uptick in acquisitions by interstate and even international companies in recent years.

“McLaren Vale has a strong reputation, both domestically and globally, so it’s not surprising that businesses from outside South Australia see it as an attractive place to invest.

“From our perspective, the acquisition of Fox Creek wasn’t about expansion for the sake of growth, it was about preservation. In a time when more and more decisions are being made outside the region, we believe keeping this heritage brand local is more important than ever.”

19th century roots

Helen Watts and Dr Jim Watts founded Fox Creek in 1984, before selling to a trio of friends — Ben Gibson, Jock Harvey and Dim Georgiadis — in 2021. At the time the trio said it was embarking “on an exciting new chapter” for the business.

The new sale to Maxwell Wines does not include Fox Creek’s 19th century stone cottage cellar door, which will close and be sold separately. Inhabited by the Malpas family in the late 1800s, the cottage still shows the initials of James Stanley Malpas carved into the stone lintel above the front door. One of Fox Creek’s wines, JSM, is named after the cottage’s former resident, while another of its wines, Postmaster, is named after James’ father Henry, who ran the original post office in the town of Willunga, South Australia.

Who is Maxwell Wines?

Before branching out into wine, Maxwell pioneered the mead industry in Australia, launching the nation’s first commercially-made mead in 1966. The business still makes and sells mead today, but premium wines have become more of a focus for the business. Current owner Mark Maxwell bought “an unloved” vineyard planted to Shiraz and Cabernet Sauvignon in the late 1980s, and today the producer owns just under 100 acres (around 40 ha) of vineyard, including Grenache, Cabernet Franc, Chardonnay and Fiano.

Mark Maxwell remains the winemaker for the estate, alongside head winemaker Kate Petering, who joined the business in 2018.

 

 

 

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