Chateau Yaldara has been sold to Chinese-owned company 1847 Winery
CHATEAU Yaldara has been sold by owner Australian Vintage to Chinese owned-company 1847 Winery.
CHATEAU Yaldara has been sold by owner Australian Vintage to Chinese owned-company 1847 Winery.
The winery near Lyndoch, which was established in 1947 by refugee Hermann Thumm, is expected to change hands in November or December as soon as 1847 acquires a liquor licence for the winery.
1847 is owned by Zhitai Wang of New South Wales and Kuifen Wang from Adelaide’s sister city Qingdao, in Shandong province in China.
It will mark a step up for the smaller company, which has previously been making its wine on a contract basis with various wineries.
1847 will employ some of the existing staff at the winery, while Australian Vintage will also retain some staff.
Australian Vintage chief executive Neil McGuigan said Yaldara, which it bought in 1999, had been an important part of the company and its people were “first class’’.
“The staff have made a significant contribution to our business,’’ he said.
“To ensure that our high quality is maintained we have entered into a two year processing agreement with 1847 and we will also retain a number of winemakers on-site post completion.
“We will retain our Barossa Valley Farms vineyard, the grapes from which are critical to our super premium wines program.
“The company’s focus remains on its three fundamental strategies: grow export business, build branded sales with emphasis on the McGuigan, Tempus Two and Nepenthe brands, and be the lowest-cost producer of quality wines.
“The sale of the Yaldara Winery and the Yaldara brand is another step towards achieving those strategies.
“Over the next two years we will be exploring various options regarding the long-term processing of our super premium grapes from the Barossa, Adelaide Hills and adjacent regions.
“The net funds from the sale of the Yaldara Winery and Yaldara brand will initially be used to reduce debt.’’
Yaldara is an aboriginal name meaning “sparkling”.
The company’s flagship product is its 40 year old premium port and it also produces the Yaldara Estate shiraz, cabernet sauvignon and sauvignon blanc.
1847 chief executive John Curnow said the acquisition was more than two years in the making.
“The winery acquisition provides 1847 with the certainty that ownership of our own winemaking facility brings,’’ he said.
“Previously 1847’s operations were restricted with winemaking operations sourced from various contract winemaking facilities on an annual basis.
“Chateau Yaldara now provides opportunity for continued expansion of both the brand and range in both domestic and international markets.’’
Australian Vintage shares closed 1c higher at 35.5c.