Salena Estate hits the market in the Riverland
One of the country’s largest organic wine producers and a top 20 wine company has hit the market in the Riverland.
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One of the country’s largest organic wine producers has hit the market in South Australia’s Riverland wine region.
Salena Estate, established by the Franchitto family in 1998, produces around 10,000 tonnes of predominantly red wine each year, with the majority sold into export markets across Asia, the US and Europe.
Included in the sale are 191.5ha of vineyards across the main site at Bookpurnong, between Loxton and Berri, and at a second property at Lyrup, just outside Berri.
Varieties grown include Shiraz, Cabernet Sauvignon, Sangiovese, Petit Verdot and Chardonnay, and 121.4ha of the vineyards are certified organic.
The volume of production makes Salena one of the top 20 Australian wine companies by total wine production, and managing director Bob Franchitto said the emphasis on organic wine had proven a successful strategy over the years.
“The winery’s got a capacity for 15,000 tonnes and we’ve done on average probably 10,000-plus tonnes over the life of the 25 or 26 vintages that we’ve done,” he said.
“Half our vineyards are certified organic - we’ve probably got one of the largest, if not the largest, holding of organic Shiraz and Cabernet.
“It’s been a big part of our business and we sell a lot of that wine overseas in places like Sweden.”
Around 70 per cent of Salena’s wine is sold overseas, and with China previously a major customer, Mr Franchitto is hopeful the Chinese government will soon lift the tariffs it imposed on Australian wine in 2020.
Salena operates a modern winery with a total storage capacity of about 17 million litres. There is also a bottling and packing line, which processes about 4500 bottles an hour, and a distillery which produces gin and vodka products under the Lock4 Distillery label.
A new cellar door and restaurant, Cucina 837, opened in October 2019.
Mr Franchitto said tourists were slowly returning to the Riverland following the devastating floods that inundated much of the region last summer.
“Tourism is slowly picking up again, we’ve had a nice busy Easter and things are slowly starting to pick up again,” he said.
Colliers Agribusiness agents Tim Altschwager, Nick Dean and Nick Goode have been appointed to manage the sale of the Salena Estate assets, which are being offered in one line or separately.
Mr Dean said the Lyrup site included a 1050sq me storage shed and a “prestige” residence in “beautifully landscaped surrounds”.
He said the Riverland accounted for 63 per cent of South Australia’s grape crush in 2022.
“Most of Australia’s major wine producers use Riverland fruit,” he said.
“Apart from Salena Estate, the region is home to several leading wineries such as Kingston Estate, The Wine Group, Angove Family Winemakers, Oxford Landing Estates and boutique producers such as 919 Wines.”
Mr Franchitto said it was the right time for the family to sell the business as he neared his 65th birthday.
“It’s time to ease back a bit and slow things down a bit,” he said.
Expressions of interest in Salena Estate close on May 18.
Originally published as Salena Estate hits the market in the Riverland
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