Globalisation of Wine Industry

Corporate Capers

Unless you’re an avid reader of the Financial Review the changes in the Australian wine industry might have passed you by. In recent years Australian wine companies have spread their wings and come of age on the world stage. Companies have expanded and increased their brand portfolio, as well as aligning themselves with other international companies. Takeovers have been rife; in fact with foreign ownership on the increase, it might well be high time for Dick Smith to start bottling Chardonnay!

The big four wine companies in Australia are: Southcorp, Beringer Blass, BRL Hardy and Orlando Wyndham. Each company has grown in the past five years on the back of the continued success of Australian wine in the major overseas markets of the United Kingdom and the United State of America. The major four now produce over 70% of Australia’s wine, even though there are a staggering 1424 wineries to be found on our shores.

For foreign ownership look no further than the company who sells Australia’s iconic ‘Top Drop’ - Jacob’s Creek, Orlando Wyndham is owned by the French Pernod-Ricard Group. The newest player in the industry, Lion Nathan, remains local but only by the skin of it’s teeth with 46% of the company being owned by the Japanese brewing company Kirin and the majority shareholder in the small Wingara Group which owns Katnook Estate, Deakin Estate and Riddoch labels, is the Spanish sparkling giant Freixenet.

In Tasmania Pipers Brook Vineyards was taken over by Kreglinger (Australia) Ltd, an extension of the Belgian company G&C Kreglinger, in late December 2001. Kreglinger has already a foothold in the wine business with a 2,000 tonne winery and vineyard at Mount Benson in South Australia, established in 1998. Their main business is in the export of wool and lambskins. Kreglinger now intends to take Pipers Brook off the Australian Stock Exchange so they can protect their investment.

Globalisation is a term that is constantly being...