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    Treasury Wine Estates buys Yarra Valley vineyard from Accolade

    Treasury Wine Estates has expanded its footprint in the Yarra Valley in Australia by purchasing the 55-hectare Beenak Vineyard from Accolade in a deal worth AU$7 million. The land is planted with 45ha of Pinot Noir and Chardonnay grapes, suited for both still and sparkling wine production.

    Tim Ford, chief executive at Treasury Wine Estates (TWE), said the company was keen to bolster its cool climate winemaking capabilities. ‘Vineyards producing Pinot Noir are of particular interest as we respond to the very strong consumer demand for our Coldstream Hills and St Huberts brands,’ he added. ‘The opening of our new cellar door at Hubert Estate has further enhanced demand for cool climate wines in the portfolio.’

    The Beenak Vineyard, planted in 1988, is located close to Hubert Estate, nestled in the Upper Yarra Valley. Langley & Co., which handled the sale, described it as an ‘outstanding source of premium Upper Yarra Valley grapes averaging 364 tonnes annually’. The deal includes a 71 million-litre water entitlement and various buildings on the land.

    TWE is Australia’s largest wine producer, followed by Accolade Wines. In a statement, Accolade said it sold the vineyard due to an oversupply of grapes from the region.
    Analysts at IWSR expect the premium and luxury wine market to be worth $120 billion by 2025. In the company’s latest financial update, Ford said that TWE intends to be ‘the clear market leader globally’ in this segment of the market.

    He added that the company boasts market leading supply and production and a leading global distribution footprint. However, he also pledged to invest in building up a stronger ‘consumer-led premium and luxury portfolio’.

    To that end, TWE recently invested $315 million in purchasing Napa Valley producer Frank Family Vineyards, and it also snapped up four wineries in Bordeaux.

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