Treasury Wine mothballs Karadoc winery as sales of low-cost wines fall

Kylar LoussikianDeputy editor – business

Jul 5, 2023 – 11.32am

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Key Points

Why it matters: Penfolds’ owner Treasury is the largest winemaker in the country
The company will close operations associated with lower-cost wines as sales sag
Karadoc has been operating since 1973 and produces its major wines brands

Treasury Wine Estates will shutter its Victorian commercial winegrowing operation, Karadoc, after five decades in operation, as a decline in consumption and rising costs weigh on the business.

Karadoc, about 25 kilometres south of Mildura, was one of four major production facilities operated by Southcorp, the producer of Penfolds, which was acquired by Foster’s Group in 2005 and later spun out as Treasury Wine.

Kylar Loussikian is the Financial Review’s deputy editor – business. Email Kylar at kloussikian@afr.com