Hugh Schuitmaker, Murray Pioneer
The Riverland’s State MP is optimistic a merge of Accolade Wines with another large industry giant will provide positive opportunities for the region.
Australian Wine Holdco Limited (AWL) last week announced Accolade Wines would be merged with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.
Chaffey MP Tim Whetstone said the decision reflected pressure facing the commercial wine sector.
“There’s other pressures on the industry at the moment,” Mr Whetstone said.
“I would think we would need to keep an eye on the bigger picture… I think there’s opportunities there for the region, but do some of the (grape) growers have time to wait for the transition?
“Pernod Ricard are essentially more focused on the spirit sector. Both entities are losing a lot of money, and I see that where they might pick up savings might be closing a production facility, (but) I would like that to be Rowland Flat and not Berri.
“You can pick out some positives for the merger, but they’re two big companies making big losses, and that’s a concern.”
Mr Whetstone said the merge was illustrative of the necessary measures to work through current industry challenges.
“We’ve watched takeovers and buyouts over time,” he said.
“It shows you how (challenging) the commercial wine industry is.
“We’ve got some representatives in the wine industry saying pull out your vines, and we’ve got other representatives saying to sell more wine.”
It is understood the transaction remains subject to regulatory approvals.
AWL spokesperson Joshua Hartz said the merge would result in a “more certain and financially sustainable future”.
“Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers, in more segments and more geographies,” Mr Hartz said.
“Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry.
“AWL will work with relevant regulators to progress the combination, and if approved, support management to focus on a smooth future integration of the businesses.”
This article appeared in the Murray Pioneer, 24 July 2024.
