Seppeltsfield acquires McLaren Vale’s Penny’s Hill Wines

Barossa Valley titan Seppeltsfield has bought one of McLaren Vale’s best known wineries as part of a new strategy to deal with the collapse in Chinese exports.

Randall Wine Group executive chairman Warren Randall with Penny's Hill founder Tony Parkinson.

Barossa Valley wine titan Seppeltsfield has acquired McLaren Vale’s Penny’s Hill Wines as part of a new strategy developed to counter the collapse in Chinese exports.

The acquisition includes the Penny’s Hill and Black Chook brands, established by pioneering winemaker Tony Parkinson and wife Susie in 1988.

Known for its distinctive “red dot” packaging, Penny’s Hill has become one of the region’s major producers, with annual sales of close to 600,000 bottles, including exports into 15 countries.

Warren Randall, the executive chairman of Seppeltsfield owner Randall Wine Group, said the acquisition represented a new strategy for the company, developed in response to the “punitive and permanent” tariffs introduced by the Chinese government in 2020.

Penny's Hill Winery in McLaren Vale has been acquired by Seppeltsfield.

“In 180 years, the Australian wine industry has never suffered such a setback - 23 per cent of the total annual value of the entire Australian wine crop was lost overnight,” Mr Randall said.

“Following a very high quality vintage in 2021 it was time to reset the company’s strategy and pivot away from the Chinese market, which is a shame because the Chinese wine consumer loves the fruit and taste profile omnipresent in Australian wines.”

Mr Randall said his group was previously selling about 50 per cent of its bulk and bottled wine into China, but it would now seek to expand into other export markets.

“The new 10-year strategy is now based around the acquisition of brands producing 50,000 to 100,000 dozen cases in Australia’s premium wine growing districts, with a strong export sales focus.”

Penny’s Hill has won a string of awards over the years, including the Best of Show – Australian Red award for its 2019 Skeleton Key Shiraz at last year’s Mundus Vini Grand International Wine Awards in Neustadt, Germany.

Its sale includes the original Ingleburne homestead which houses the Penny’s Hill cellar door, restaurant, gin bar, art gallery and function room between McLaren Vale and Willunga, as well as 23ha of vineyards, boutique accommodation, offices, temperature controlled warehouses and access to an established distribution network across Australia and in the US.

Mr Parkinson said it was the right time to step down after three decades in the industry.

“In the face of advancing years and with no clear family succession plan, it was time to find a new custodian for the 1855 estate,” he said.

“Warren has a proven track record of acquiring, respecting and injecting enthusiasm and energy into historic 19th century Australian wine estates with provenance.

“I trust that he will carry on my legacy and springboard the brands to greater international success under his leadership.”

Originally published as Seppeltsfield acquires McLaren Vale’s Penny’s Hill Wines