The troubled Treasury Wine Estates, owners of the Penfolds, Rosemount and Wolf Blass brands, is closing its Ryecroft winery in McLaren Vale, with 33 jobs going from the South Australian wine region.
2014 is the last vintage from the winery. Management broke the news to staff this morning. The site is predominantly used to produce Rosemount Estate wines from local grapes.
Treasury wine production director Peter Taylor said the decision was in line with the strategic vision from new CEO Mike Clarke, who has described 2015 as a “reset year” for the company after the business wrote down a further $260 million in value in June.
“This is a tough but necessary action that TWE has to take. We have several wineries within our production footprint and need to ensure that they operate at the highest possible capacity to maximise the efficiencies of our network. Unfortunately Ryecroft has been operating at around half its capacity for several years now, and it is simply not sustainable for this to continue,” Taylor said.
“Rosemount wines previously made at Ryecroft will continue to source their fruit from McLaren Vale and surrounding regions; the only change is the location where the wine will be made,” he said.
The company will continue to run a Rosemount cellar door in McLaren Vale and has around 900 hectares of vineyards in the region.
Plans for shutting down the winery will begin immediately and are expected to take several months. The 33 staff will either be relocated or made redundant.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.