Accolade Wines makes groundbreaking change

REYNELLA, Australia – Accolade Wines and Treasury Wine Estates (TWE) announced a major transformation of the wine industry entering into reciprocal bottling and packaging contracts that will see Accolade Wines bottle for TWE in the UK and TWE bottle for Accolade Wines in Australia.
Accolade Wines chief executive Troy Christensen says the agreements would strengthen the Australian wine industry by improving the efficiencies of both Accolade Wines and Treasury Wine Estates.
“This groundbreaking agreement will enable each of us to secure economies of scale in each region,” adds Mr Christensen.
“Our decision to enter a reciprocal bottling agreement with TWE underpins Accolade Wines continued success in Australia and globally.
“This agreement is important for the thousands of people in Australia and globally who rely on our business including employees, customers, grape growers and other suppliers. It will allow us to put more effort into growing the sales of Australian wine in Asia and North America.
“We are delighted to partner with TWE in the UK where we will undertake all of TWE’s UK bottling. This will move to Accolade Park in Bristol which will increase production there by 30 pc.”
Mr Christensen adds that the changing market dynamics had created surplus Australian bottling capacity which was holding back the Australian wine industry.
“For a number of years we have researched alternatives to avoid outsourcing our Reynella bottling and distribution facility, including relocating assets within the business. No other option delivered such long term benefits.
“We were faced with the difficult realisation that the best option for our business, and for the Australian industry was to ensure that the most efficient facilities were fully utilised even if they were not our own.
“This is a very significant decision for the Australian wine industry as it creates a new paradigm for the industry. It recognises that we are in the business of producing wine and getting it to consumers. Just as we do not own all our own vineyards, or all our own trucks, we don’t have to own every piece of equipment that helps us get wine to the consumers’ glass.”
The decision was not taken lightly because it means that 175 employees at Reynella will be made redundant, he says.
“All employees made redundant will receive their full redundancy entitlements and further support in the form of outplacement services to help find new jobs.”
Approximately 20 of the redundancies relate to a separate arrangement where Accolade Wines will outsource its Reynella warehousing and distribution to MacKenzie Hillebrand’s facilities at Outer Harbor, South Australia.
“We are working with Treasury and separately with MacKenzie Hillebrand on plans that we anticipate will see us fully transitioned by January 2013,” Mr Christensen says.