McWilliams Wine Group to keep doors open

Winegrape growers breathe a sigh of relief following the latest news from one of Australia’s oldest and largest wine makers on the brink of collapse.

THE Riverina’s oldest winery will keep its doors open despite calling in administrators last week in a move that shocked the Australian wine industry.

Family-owned McWilliams Wine Group told winegrape growers late on Friday it would continue operating and so was in the market for their grapes.

The news came days after the 141-year-old company — Australia’s sixth biggest wine business — announced it had entered into voluntary administration due to “a decline in business performance, including evolving structural market dynamics and capital constraints”.

Many growers — some who have supplied the winery for generations — were scrambling to find a buyer for their fruit last week, less than a month out from harvest.

McWilliams sources from growers and also has its own vineyards in the Riverina, Canberra, Hilltops and Tumbarumba.

Riverina Winegrape Growers chairman Bruno Brombal said a McWilliams field officer told the grower body the winery would continue operating for the foreseeable future and needed this year’s grapes.

“It’s the best news I’ve heard in a long time,” Mr Brombal said.

“They’re moving forward and taking fruit off growers. We need the winery to continue in the long-term. We don’t want any winery closing in this region, especially when things are looking good in export markets.”

While McWilliams is well-respected among growers and news of its downfall has come as a shock to some, the company’s financial struggles were well known within the industry.

KPMG Australia is assessing the business and its operations.

KPMG restructuring services partner Gayle Dickerson said expressions of interest were being sought to recapitalise or acquire the group.

It comes a year after the unlisted, publicly owned company was forced to seek a capital injection and pursue asset sales after it posted a $5.5 million annual loss.

Griffith winegrape grower and long-time McWilliams supplier Bruno Altin said although it was good news the company would continue operating, many growers had already found other buyers for their crop.

“People want security, so there are a lot of growers who have already moved. And they’ve found buyers quite easily because there’s demand for their fruit,” Mr Altin said.

McWilliams chairman Jim Brayne said in a statement: “We have not made the decision to enter into voluntary administration lightly.”