Casella Family Brands sells 35 vineyards
Southern Premium Vineyards has acquired 35 vineyards from the Casella Family Brands wine group. The sale covers 7,215 hectares in South Australia and New South Wales, including water rights and machinery and equipment attached to the vineyards. Vineyards are located in the Clare Valley, Langhorne Creek and Limestone Coast regions of South Australia, as well as the Riverina region of NSW.
Southern Premium Vineyards (SVP) already owns approximately 460 hectares of vineyards in the Coonawarra in south-eastern South Australia and the Barossa Valley. The Public Sector Pension Investment Board owns one of Canada’s largest pension investment managers. SPV director Nick Gill said: “SPV’s strategy is to offer wine companies a cross-regional grape sourcing solution for their grape sourcing as an alternative to owning or leasing vineyards – and the partnership with Casella is a perfect fit for this strategy.”
John Casella said: “We are delighted to enter into this partnership with SPV, the platform of PSP Investments, which is an investor with a proven track record of successful long-term agribusiness investments in Australia and around the world.
“We are confident that SPV will continue to provide the quality and consistency of the grapes we need, protect and preserve the vineyards and ensure the welfare of employees.”
Marc Drouin, Senior Managing Director of Real Assets and Global Head of Natural Resources Investments at PSP Investments, said: “Our commitment to sustainable agriculture, combined with our long-term investments, enables PSP Investments to establish Australia’s unique global competitive position in quality grapes. .
“Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most respected wine regions.
“This acquisition is a cornerstone investment for the global wine portfolio of both SPV and PSP Investments.”
Casella put most of its vineyards in NSW and South Australia on the market in May following a strategic review of the business.
A review of Australia’s largest privately held winemaker has led to a decision to focus the company’s resources on brand building rather than vineyard management. The Australian described the move as “the largest sale of vineyards as a single lot in memory in Australia”, which is expected to fetch Casella tens of millions of dollars. Casella has entered into long-term grape supply agreements for all 35 vineyards to ensure a constant supply for its well-known brands.
John Casella said, “The company is in a good financial position as it recently posted record global sales for Yellow Tail during the COVID-19 pandemic.
“Although demand has stabilized, we anticipate future growth through continued investment in our brands supported by strategic innovation.
“The planned strategic partnership will allow us to focus on strengthening our brands globally and therefore deliver positive outcomes for the Australian wine industry.”
Some Casella-owned vineyards located in the Riverina and Barossa were not included in the sale, as were its Victorian vineyards, which include Baileys of Glenrowan and Morris of Rutherglen. The company plans to use the funds to build a growing portfolio of wine brands, launch new spirits brands – in categories such as spirits, beer and seltzer – and expand its whiskey business.
In January, Coca-Cola Europacific Partners sold its stake in Australian Beer Co (ABCo), located next door to the Casella Distillery in Yonda, NSW, to Casella Family Brands.
Coca-Cola Europacific Partners Vice President and General Manager Australia, Pacific and Indonesia Peter West said: “Casella Family Brands is a highly respected partner and when we approached them as part of our strategic review of our beer and cider strategy, John and his team sought to explore the possibility of acquiring full ownership of ABCo. We have had a wonderful partnership with Casella Family Brands for almost ten years now and are on good terms. We sincerely wish them
the best for the future.”
John Casella said: “ABCo is an exciting business run by a modern brewing company and we welcomed the opportunity to take full ownership. We will strive to maintain the excellent relationships that the CCEP team has built with customers in the beer and cider category in Australia. We have enjoyed our partnership with CCEP to grow the ABCo business and we are both leaving the joint venture on excellent terms.”
On July 1, Casella Family Brands acquired full ownership of Australian Beer Co.
https://www.retailnews.asia/casella-family-brands-sells-35-vineyards/?utm_source=rss&utm_medium=rss&utm_campaign=casella-family-brands-sells-35-vineyards Casella Family Brands sells 35 vineyards