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|Thursday, July 26, 2012||11:43|
(drinks media wire) – Accolade Wines and Treasury Wine Estates (TWE) today announced a major transformation of the wine industry entering into reciprocal bottling and packaging contracts that will see Accolade Wines bottle for TWE in the UK and TWE bottle for Accolade Wines in Australia.
Accolade Wines Chief Executive Troy Christensen said the agreements would strengthen the Australian wine industry by improving the efficiencies of both Accolade Wines and TWE.
“This ground-breaking agreement will enable each of us to secure economies of scale in each region,” Mr Christensen said.
“Our decision to enter a reciprocal bottling agreement with TWE underpins Accolade Wines continued success in Australia and globally.
“This agreement is important for the thousands of people in Australia and globally who rely on our business including employees, customers, grapegrowers and other suppliers. It will allow us to put more effort into growing the sales of Australian wine in Asia and North America.
“We are delighted to partner with TWE in the UK where we will undertake all of TWE’s UK bottling. This will move to Accolade Park in Bristol which will increase production there
by 30 pc.”
Mr Christensen said changing market dynamics had created surplus Australian bottling capacity which was holding back the Australian wine industry.
“For a number of years we have researched alternatives to avoid outsourcing our Reynella bottling and distribution facility, including relocating assets within the business. No other option delivered such long term benefits.
“We were faced with the difficult realisation that the best option for our business, and for the Australian industry was to ensure that the most efficient facilities were fully utilised even if they were not our own.
“This is a very significant decision for the Australian wine industry as it creates a new paradigm for the industry. It recognises that we are in the business of producing wine and getting it to consumers. Just as we do not own all our own vineyards, or all our own trucks, we don’t have to own every piece of equipment that helps us get wine to the consumers’ glass.”
Mr Christensen said the decision was not taken lightly because it means that 175 employees at Reynella will be made redundant.
“All employees made redundant will receive their full redundancy entitlements and further support in the form of outplacement services to help find new jobs,” Mr Christensen said.
Approximately 20 of the redundancies relate to a separate arrangement where Accolade Wines will outsource its Reynella warehousing and distribution to MacKenzie Hillebrand’s facilities at Outer Harbor, South Australia.
“We are working with Treasury and separately with MacKenzie Hillebrand on plans that we anticipate will see us fully transitioned by January 2013,” Mr Christensen said.
For further information, please contact:
Australia: Anita Poddar, Public Relations Manager, Mobile: +61 (0)417 819 978
UK: Adam Withrington, PR & Events Controller +44 (0)7500 994 193
Drawing on a proud heritage based on one of the first wineries established in Australia, Accolade Wines has evolved into a global wine company with some of the world’s best-known brands sold in over 80 countries, including Australia, the UK, Mainland Europe, the US, Canada, Japan and China.
The business is the number one wine company by volume in the UK and Australia, with a portfolio of brands ranging from the historic Hardys, the number one Australian wine brand in the UK and significant wine brand in Mainland Europe, through to Kumala, the number two South African wine brand in the UK. The UK portfolio also includes Echo Falls, the third largest wine brand in the UK, Stowells, the number one wine brand in the on-premise trade, Banrock Station (Australia), the UK’s number one environmentally-friendly wine brand and South African Fish Hoek and Flagstone. The portfolio also includes various other premium branded wines and a Wine Fusion portfolio including, Stone’s Ginger Wine, Stone's Ginger Joe alcoholic ginger beer and Babycham.
The US portfolio includes Californian brands Geyser Peak, Atlas Peak and XYZin, drawing on respected Sonoma and Atlas Peak regions.
The Australian portfolio includes Hardys, the 175 year-old Houghton label, Banrock Station, Omni, Goundrey, Brookland Valley, Berri Estates, Stanley, Amberley, Moondah Brook, Leasingham, Tintara, Tasmanian label Bay of Fires, plus sparkling brands House of Arras and Yarra Burn.
Accolade Wines is headquartered at Reynella, South Australia, and has offices in Guildford, Bristol, Sydney, Brisbane, Perth, Melbourne, Singapore, Stellenbosch, Tokyo, Moscow, Amsterdam, Shanghai, Beijing and California.
The company has more than 1700 employees in Australia, the UK, Europe, Asia, North America and South Africa.
|Company: Accolade Wines|
|Address: Reynell Road, Reynella SA -|
|Phone: Australia: +61 (0) 8 8392 2222 - Europe: +44 (0) 1|