Home News By Jo Gilbert Published: 29 May, 2024 The crisis in the Australian white wine market has actually deepened now that buyout settlements in between Australian Vintage and its bigger competing Accolades Wines have actually collapsed. The previous has actually asked for a suspension of its shares on the Australian stock market as it comes to grips with a grape excess and installing financial obligation. The brand name owner, which has Tempus Two and McGuigan in its portfolio, has actually remained in conversation with Accolade given that February. The buyout deal has actually now been formally rescinded as Accolade informed the smaller sized group that it was “not in a position to continue additional conversations at this time”. Find out more: Félix Solís broadens international footprint with 2024 Chilean vintage Their statement soon followed the choice of over 500 members of the CCW Co-operative based in South Australia’s Riverland area to downvote a proposition to restore an existing grape-growing agreement with Accolade which extends back 30 years. The background to these conversations is an installing red wine oversupply crisis in Australia which reached 2 billion litres in 2015 (Rabobank). The Riverland area produces about 10% of Australia’s white wine. There is now issue that countless vines will possibly require to be ruined if the issue can not be repaired. Award Wines CEO Robert Foye just recently informed the Australian Financial Review that the present circumstance “merely isn’t sustainable”. It is thought that the brand-new owners of Accolade– a consortium of financial investment company Bain Capital, which ended up being the business’s biggest stakeholder in April– pressed to upgrade Accolade’s biggest grape supply agreement. A bulk (95%) of the growers turned down the offer, which is thought to have actually added to the buyout collapse. It has actually been reported that Accolade prompted the organisation’s growers to accept the offer, stating it was the “just alternative that enables CCW’s growers and Accolade to stay practical”. Australian Vintage has actually now asked for a suspension of its shares in the middle of strategies to raise capital and re-finance its financial obligation. The business’s net financial obligation is anticipated to swell to AU$ 70-75m by the end of June, compared to a previous price quote of AU$ 43-50m. Australian red wine Accolade Wines Australian Vintage grape oversupply
Australian Vintage looks for emergency situation capital raise as Accolade offer fails – Harpers Wine & Spirit Trade Review
