Colliers International to sell substantial vertically integrated wine business in SA
A vertically integrated wine business incorporating a large portfolio of vineyards in South Australia’s renowned Fleurieu region is expected to generate wide-ranging interest.
Colliers International’s Tim Altschwager and Nick Dean are selling Ballast Stone Estate Wines, located at Myrtle Grove Road in Currency Creek, about 80km south of Adelaide.
Trading as Shaw Family Vintners, the wine business on offer encompasses around 430ha of vineyards and is a successful processor and producer of bulk and bottled wine, operating a modern processing facility and releasing wines under proprietary brands including Emetior, RMS, Shaw Family Vintners, Stonemason, Steeple Jack, Currency Creek Estate, The Creek Station and Winery Road.
“Shaw Family Vintners have for some time been seeking an equity partner and is now offering the winery and the wine business for sale,” Mr Altschwager said.
“The company’s wholesale presence with independent liquor groups in the South Australian market is very strong, selling circa 20,000 cases annually. A significant opportunity exists to grow the Shaw Family Vintners brand in the Eastern States via an appropriate distributor.
“Shaw Family Vintners also exports approximately 50% of its branded bottled wine and enjoys a growing presence in China via a joint venture arrangement, providing a solid platform to further expand the customer base and increase sales to this market."
Improvements comprise a large commercial winery together with barrel storage, cellar door and administration buildings.
Built in 2000, the facility includes the latest wine processing technology and provides crushing capacity of 7,000 tonne (while being licenced to crush 20,000 tonne). It also includes 1,000sqm of barrel storage and a total storage capacity of six million litres.
The plant has capacity to increase its current output substantially via the addition of further storage tanks.
“In the 2015 financial year, the winery produced around 52,000 cases of bottled wine and around 1.25m litres of bulk wine,” Mr Dean said. “Total net sales revenue in the 2015 financial year was approximately $6,707,000."
Mr Dean said the winery was well situated within the Fleurieu wine region, which also encompassed Kangaroo Island, Langhorne Creek and Southern Fleurieu.