Hugh Schuitemaker, Murray Pioneer
The Riverland’s State MP says a planned corporate merger involving Accolade Wines needs to remain focused on sustainability within the local wine industry.
Australian Wine Holdco Limited (AWL) last week announced the Australian Competition and Consumer Commission had granted merger clearance for the combination of Accolade Wines with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.
However, Chaffey MP Tim Whetstone hoped the merger would avoid competition between Accolade’s Berri Estates, and Pernod Ricard’s Rowland Flat wineries.
“If it can be of benefit to the region, I’m very supportive,” Mr Whetstone said.
“At first glance they have been competing brands with the Riverland product, so I’m very keen to see how the merger will be of benefit to our region, and how it will provide some certainty for our grape growers, and the local economy.
“My view is the Glossop facility is a much more modern and up-to-date facility, and it has capacity to expand. It has capacity, in what I would consider, to be further value-added.”
Mr Whetstone said working towards sustainable outcomes for both Riverland grape growers and the Berri winery was crucial.
“We have a proven track record of growing a premium product, for a market that is giving our region some hope, and the opportunity we are looking for,” he said.
“There is more complexity with the CCW supply contracts into Accolade, but we’ve had an opportunity to show we can work with the wineries, and the sector at large, to not only be the engine room of the industry, but to value add (to) what the industry presents us through these challenging times.
“All the elements of the industry have to come together”¦ so we can have some certainty to an industry doing it extremely tough at the moment.”
An Accolade Wines spokesperson said merging the companies would maximise opportunities to showcase “leading international wine brands”.
“Accolade Wines welcomes the confirmation by the Australian Competition and Consumer Commission that it will not oppose Accolade Wines’ proposed merger with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses,” the spokesperson said.
“The ACCC’s approval is an important milestone in bringing together two highly complementary businesses with long, proud histories, to create a more resilient company, with a diversified portfolio of leading international wine brands, and operations in every continent.”
AWL spokesperson Joshua Hartz said “management are focused on preparations for a smooth integration of the businesses once the deal completes”.
“We welcome the ACCC’s decision,” Mr Hartz said.
“We have worked closely with all stakeholders to progress this combination and (this) milestone takes us a step closer.
“Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers.
“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. 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.”
It is understood the transaction remains subject to approvals from the Foreign Investment Review Board (Australia) and the Overseas Investment Office (New Zealand) which need to complete before the businesses can be combined.
This article appeared in the Murray Pioneer, 30 October 2024.