ASX-listed winemaker Treasury Wines Estate (TWE) will close its Karadoc winery in northwest Victoria due to declining wine consumption and rising costs.
Established in 1973, the Karadoc winery makes wine for TWE brands including 19 Crimes, Lindeman’s, Wolf Blass and Yellowglen.
TWE chief supply officer Kerrin Petty said the decision was a “last resort” after the company looked at all other options.
“A number of factors contribute to our shifting vineyard footprint including changing consumer trends and wine preferences as well environmental changes such as higher temperatures and reduced access to water.
“This has meant divesting some of our vineyard assets but also looking at opportunities to expand our footprint in new locations for future growth.”
According to SMH, the closure would result in the loss of 60 jobs, however, the company said necessary assistance would be provided to help staff land roles in the local winemaking industry.
The winemaker will also divest its commercial vineyards in Lake Cullulleraine, Victoria and Yankabilly, NSW.
Following the closure mid-next year, the brand’s wine will be produced through TWE’s winemaking partners – Zilzie Wines and Qualia – and at TWE’s Barossa winery in South Australia.
In May, the winemaker said it was looking to sell off underperforming brands to cut costs and focus more on growing its higher-value and luxury portfolio.
