The Treasury unclogs the Barossa wine factory
TWE, which produces several top South Australian wine brands including Penfolds, Wolf Blass, Wynns and Pepperjack, says Nuriootpa’s state-of-the-art wine production facility has the capacity to produce over 100 million liters of wine every year.
The site is adjacent to TWE’s Wolf Blass Visitor Center and is also home to the company’s largest bottling operation, packing up to 216 million bottles annually, operating four bottling lines and exporting to more than 70 countries. .
Announced in 2019, the expansion of the Wolf Blass Bilyara site has increased the company’s premium winemaking capacity by a third and expands TWE’s storage capacity.
Unveiled this morning, the upgrade also includes another production line, processing infrastructure and additional barrel storage facilities.
TWE says the site now employs around 400 permanent team members and up to 600 during peak harvest times.
In February, the company reported half-year profit of $109 million despite a 10% drop in profit.
However, TWE’s premiumization push allowed it to increase its net revenue per case by 16% to $95.60. More than 80% of revenue is now generated by its premium and luxury portfolios.
The company was subject to Chinese tariffs of 175.6% applied to its wine at the end of November 2020, which have been in place for at least four years.
This prompted TWE to split the business into three divisions – Penfolds, Treasury Premium Brands and Treasury Americas from July 1.
TWE Sourcing Director Kerrin Petty said the new facility demonstrates the leading premium wine company’s commitment to South Australia and its continued focus on innovation in the wine industry. .
“It is a proud moment to unveil our new Barossa wine production facility, which has taken two and a half years to develop in the face of the challenges of the pandemic,” he said.
“The new site is purpose-built for high-end winemaking with the ability to scale production up or down based on demand, which is crucial given the ebbs and flows of wine production.”
This site also includes a 4500m² Icon Cellar building to showcase “Global Best Practices for Luxury Winemaking” and offers visitors VIP experiences and winemaking tours.
Petty said the project brought the company closer to its environmental goals.
“As a first step towards our goal of being 100% powered by renewable energy by 2024, we are installing solar panels to offset 22% of the site’s energy consumption from the grid,” he said. declared.
“We also installed a 254 megalitre dam specially designed to store treated wastewater in winter and irrigate our vineyards in summer.”
The production increase follows a conscious decision by TWE to shift its focus from China to the United States.
In November, TWE announced a deal to buy luxury California winery Frank Family Vineyards for $432 million as part of its premium focus in the United States.
The company also increased global sales of its 19 Crimes brand, a North American favorite, to more than five million 9-litre cases a year.
It also divested several US brands last year, generating cash proceeds of approximately $300 million.
TWE’s stock price rose slightly this morning to $11.08, giving it a market capitalization of around $8 billion.
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