Casella buys Baileys of Glenrowan
Treasury Wine Estates (TWE) today announced it has signed an agreement to sell its Baileys of Glenrowan assets to Casella Family Brands.
Located five kilometres west of the township of Glenrowan and 245km north east of Melbourne, the Baileys of Glenrowan asset sale includes the cellar door, winery, 144ha of vineyards and the Baileys of Glenrowan and Bundarra Farm brands.
TWE Managing Director ANZ Angus McPherson said the agreement with Casella Family Brands was mutually beneficial.
“The sale of this property aligns with TWE’s ongoing supply chain optimisation strategy which is focused on creating greater efficiencies across our wine production network. At the same time, Casella Family Brands wants to expand its regional diversity, so it made sense to accept their offer for Baileys,” McPherson explained.
Casella Family Brands has indicated it will continue operating the site, and will retain all current employees who are working in a range of casual, part-time and full-time roles within the cellar door, winery and vineyards.
It can also be confirmed that TWE will continue to sell existing bottled wine inventory for Baileys of Glenrowan within the next two years.
Settlement on the purchase is set to occur on December 15, 2017.
It's the second purchase by Casella in two years of a wine brand famous for its fortified wines. In 2016, it announced that it has acquired full ownership of Morris Wines from Pernod Ricard Winemakers.
John Casella noted at the time: “Morris Wines is an iconic Australian winery and one of the greatest fortified wineries in the world, with over 150 years of history and winemaking tradition. I believe we are well placed to build on the strength of the brand and cellar door experience to ensure Morris Wines continues its legacy.”
The addition of Glenrowan further enhances Casella's premium Australian wine offering, joining a portfolio of brands that include Peter Lehmann Wines and Brand’s Laira.
Casella also said he believed a fortified revival was on its way.
“I believe the premium fortified category offers growth potential and Casella Family Brands is well placed to invest in developing the Morris of Rutherglen brand," he noted.
General Manager Sales Mark Churi echoed the sentiment during an interview for the latest issue of drinks trade, noting: "It’s interesting how engaged the market is with the brand. The fortified category is seeing renewed interest from consumers as a result of the shift towards premiumisation. To me, it is all about heritage, authenticity and generations of winemaking expertise. We are fortunate enough to now own one of the world’s most iconic fortified wineries."
Make that two!