How Bob Oatley rebuilt Rosemount’s wine business
Game over? Not quite. In the wake of a merger that threatened his wine empire, Bob Oatley fought back, rebuilding his business and staging a comeback.
After Bob Oatley sold his coffee and cocoa plantations in Papua New Guinea in 1969 he moved his focus to the Hunter Valley, intending to run Charolais cattle and thoroughbreds. He also planted a few hectares of shiraz and gewürztraminer that produced, in 1975, Rosemount’s first commercial vintage. Fast forward 16 years to when Southcorp paid $880 million in cash and $610 million in Southcorp shares for Rosemount’s wine empire and, critically, its management. Rosemount’s management team was peerless. There was a brilliant chief winemaker in Philip Shaw, who was able to duplicate quantities of the Diamond Label Chardonnay if sales threatened to exceed supply; Chris Hancock was the affable general manager, filling in the communication gaps and silences of Shaw; and Oatley’s vision saw markets established in both the UK and US.
A new face appeared in the wake of the merger: Keith Lambert, CEO of the Rosemount Group. He had a background in beer, not wine, and it is a matter of public record that his aggressive approach through deep discounting caused mayhem in the market. But even worse was his decision to terminate the longstanding and productive US distribution agreement between (Rosemount stablemate) Lindeman’s and WJ Deutsch, which had made Lindeman’s Bin 45 Chardonnay the number one brand in the US. John Casella had a series of labels already registered and protected, including Yellow Tail, and a winery looking for large-scale distribution of cheap but reliable quality à la Bin 45. Game over? Well, not quite.
In January 2005 Balmoral Investments, the Oatley Family company, sold its Rosemount shares to Foster’s for $590 million. Once a five-year non-compete restraint had expired, Oatley began to rebuild its wine business. Indeed, it’s been so successful that Sandy Oatley, Bob’s eldest son, has purchased all those assets and will run this as a separate company with a shared head office.
-
Robert Oatley Vineyards
2018 Robert Oatley Vineyards The Pennant McLaren Vale Shiraz
Sourced from 40 to 80 year old vines that spent 14-21 days on skins, then matured in French oak (20% new) for 12 months. It has excellent texture and structure and winemaker Larry Cherubino has not made any attempt to temper the power of the spicy black and blue fruit that confer authority and length on the palate.
13.5% alc, screwcap
95 points, drink to 2038, $105
2022 Robert Oatley Vineyards Finisterre McLaren Vale Grenache
You don’t often come across a grenache led by elegance, brilliant colour, purity and nigh-on perfect texture and structure. It’s a dividend for the investment in being hand-picked, sorted, and matured for six months in used, large format, French oak.
13.5% alc, screwcap
95 points, drink to 2033, $40
2022 Robert Oatley Vineyards Signature Series Margaret River Sauvignon Blanc Semillon
An 80%/20% blend, separately fermented, but neither component had any exposure to oak. The bouquet is highly floral, the palate with the full array of tropical fruits, tethered by strong acidity. Delivers a complex message of fresh citrus, the acidity the all-important driver. It has cellar-worthy structure most likely to be ignored - a pity.
12% alc, screwcap
93 points, drink to 2032, $24