Penfolds exits VIP Birdcage, ending partnership with Victorian Racing Club

Penfolds will no longer be the official winery of the Melbourne Cup Carnival, as it ends a lucrative four-year deal with the Victorian Racing Club.

Iconic Australian winery Penfolds is walking away from the Melbourne Cup Carnival in a fresh blow to the cash strapped Victoria Racing Club.

In a multimillion-dollar VRC decant, South Australian based Penfolds will pull the pin on a lucrative contract as official winery of the Cup Carnival and naming rights partner of the hugely popular Victoria Derby.

The Herald Sun can reveal Penfolds – maker of iconic Aussie drop Grange – will turn its back on the VRC, Australia’s oldest feature race — the Derby — and pull out of the VIP Birdcage, taking some gloss off the glamorous Cup Carnival enclosure.

Penfolds has brought the likes of supermodels Alessandra Ambrosio and Bambi Northwood Blyth, Buddy and Jesinta Franklin and actor Daniel McPherson to the Birdcage and poured Grange and other top-shelf wine to guests since signing a four-year deal in 2021.

But the company confirmed it would end its contract in July, leaving VRC chief executive Kylie Rogers scrambling to find a new major sponsor.

Erin Holland at the 2023 Penfolds Victoria Derby Day. Picture: Supplied

“After careful consideration, we have decided to end this partnership to shift our efforts and investment to other strategic priorities, with continued focus within the Australian market,’’ Penfolds said in a statement.

“We remain committed to delivering innovative and disruptive Penfolds experiences to wine lovers and consumers.’’

It comes as the VRC tries to wipe more than $70m of debt drawn over four years, pointing to big crowds at last year’s Cup, Derby, Oaks and Stakes and a record economic impact to Victoria as reason for hope.

Jesinta and Lance Franklin at the 2023 Melbourne Derby Day. Picture: Supplied

In a statement, the VRC said: “The mutually beneficial partnership between the VRC and Penfolds concludes in July 2025 as per the current agreement.

“We look forward to providing an exciting update on new partners shortly.’’

Penfolds became only the third naming rights sponsor for the Victoria Derby in its 170-year-history when it inked a deal four years ago as Victoria emerged from draconian Covid restrictions that kept fans away from the races.

Wine tasting became a feature of Penfolds Cup Week marquee and Grange was served at high class VRC functions, raising the eyebrows of those with knowledge of the club’s debt crisis.

But Penfolds confirmed it would it would cork its four-year-contract within weeks.

Storm and Ronan Keating at the Penfolds Marquee on Melbourne Cup Day. Picture: Supplied

“​We are proud of the achievements we have shared with the Club, including three consecutive years delivering world-class experiences within Flemington’s Birdcage,’’ it said.

The exact amount of the sponsorship deal has not been released publicly but it is believed a large portion was made up of “contra’’ Penfolds product served at Flemington as well as cash.

Sources said the VRC would prefer a bigger cash component from its next Derby Day sponsor, given its pressing financial issues but the prestige brought by Penfolds would be missed.

Penfolds’ exit leaves luxury car brand Lexus, Crown, Furphy beer and TAB as principal and major VRC sponsors.

The Herald Sun in February revealed the four-day Cup Carnival generated more than $502.4m for the Victorian economy and $1.02b Australia-wide.

The first major economic study of spring racing statewide since 2019 found last year’s Victorian Carnival had a gross economic benefit of $785.1m to the state economy.

Originally published as Penfolds exits VIP Birdcage, ending partnership with Victorian Racing Club