BIG PRODUCERS CLEAR THE DECKS
'TIS THE season for rationalisation, with the top two Aussie wine producers clearing their houses of unwanted wineries. In February, Constellation Wines Australia (formerly the Hardy Wine Company) announced the sale of its Mount Barker winery in Western Australia to West Cape Howe Wines. The deal also included four vineyards in the Great Southern region.
Also in February, the big Australian - Foster's Wine Group - announced a new streamlined business that it hopes will save $100 million a year. Unfortunately, chief executive Ian Johnston refused to go into detail on his company's proposed money-saving strategies, allowing for a lot of conjecture and concern among employees. It is believed that Foster's wants to discontinue half of its wine brands and sell up to 36 vineyards across Australia.