Foster’s Group Limited (Foster’s) intends to sell one French and two Australian wineries, as well as surplus production and packaging facilities, as it consolidates wine making at key regional sites.

The facilities, Rosemount Denman in the Upper Hunter Valley, Seppeltsfield in the Barossa Valley, selected facilities at Penfolds Nuriootpa in Australia and Domaine La Motte in the Languedoc Rousillon region in France, will be prepared for sale in coming months.

The planned sales are part of a consolidation of the Southcorp and Beringer Blass Wine Estates production facilities – focusing on improving quality, efficiency and safety at key regional sites.

“Over the last 12 months we have transformed Foster’s into one of the world’s leading premium wine producers” said Jamie Odell, Managing Director, Foster’s Wine Estates. “The sale of these facilities will allow us to consolidate wine making at our most technologically advanced, flexible and efficient facilities.”

Foster’s will retain associated brands, although the Seppeltsfield fortified brands will be divested. Subject to buyer interest, Foster’s will also consider selling the James Herrick brand. Foster’s will continue to produce the majority of Penfolds premium red wines at the purpose built Nuriootpa winery.

“We are committed to growing the famous Penfolds, Rosemount, and Seppelt labels from truly world class facilities,” Mr Odell said. “A combination of wine making expertise, access to the best regional vineyards, and flexible and advanced production facilities gives us a competitive edge in building these great Australian brands.”

The asset sales will not affect regional vineyard holdings or grape sourcing agreements. Cellar doors will remain for each brand at Nuriootpa and Magill Estate (Penfolds), McLaren Vale (Rosemount) and Great Western (Seppelt).

For Further information:

Media
Troy Hey
Tel: +61 3 9633 2085
Mob: 0409 709 126

Investor
Chris Knorr
Tel: +61 3 9633 2685
Mob: 0417 033 623



Further Information:

Rosemount Denman (Hunter Valley)

The Rosemount Estate Upper Hunter Valley winery was built in 1968 at the 94 hectare Denman Estate. The winery includes significant storage and warehousing capacity, cellar door, guesthouse and dwellings, and an annual crush capacity of 20,000 tonnes (15 million litres).
The sale of the Denman winery may be associated with an ongoing contractual arrangement to supply wines for the Rosemount brand.

Penfolds Nuriootpa (Barossa Valley)

The Penfolds winery was established at Nuriootpa in 1911 and the site became the focal point of Penfolds winemaking in the 1970s.
The white wine facility is now comprised of three legacy wineries: Tolley, Kaiser Stuhl and Penfolds, and has an annual crush capacity of 15,000 tonnes (10 million litres).
Foster’s will retain the adjacent purpose-built Penfolds red wine centre and associated heritage cellar door. The red wine facility was constructed in 1996 and will continue to make the majority of Penfolds red wines including the flagship Grange, RWT, Bin 707 and St Henri ranges.

Seppeltsfield (Barossa Valley)

The Seppeltsfield property was purchased by Joseph Seppelt in 1851 and is today dedicated to the production of premium fortified wines. Its blue stone cellars hold around 9 million litres of fortified wines including stocks of the now famous 100 year old Para Liqueur Vintage Tawny. The 185 hectare property includes the National Trust listed historic homestead and 108 hectares of surrounding vineyards.

Domaine La Motte (Languedoc Rousillon)

Domaine La Motte lies close to Mediterranean coasts in France’s Languedoc Rousillon region. The 3000 tonne annual capacity winery produces wine for the James Herrick and La Belle Terrasse brands.