Foster's Group Limited (Foster's) and Kilikanoon today agreed the sale of the Seppeltsfield site in South Australia's Barossa Valley.
The sale includes the historic Seppeltsfield site, winery, vineyards and visitor facilities, the rights to the Para, Trafford, Old Trafford, Solero and Mt Rufus fortified wine brands and the majority of Seppelt fortified wine stock currently on site. Foster's has granted Kilikanoon an exclusive license for the Seppeltsfield brand.
"The Seppeltsfield site is truly unique in the wine world, said Foster's Chief Executive Officer, Trevor O'Hoy." Under Kilikanoon's stewardship, this site will continue as one of the world's great names in fortified wine and retain its place as a great South Australian tourism landmark."
"Seppeltsfield houses the world's greatest collection of fortified wines dating back to 1878 in an unbroken tradition. We are proud to become the next custodians of this priceless national treasure", said Kilikanoon CEO, Nathan Waks. "We will work hard to ensure that Australia's already fine reputation in this area is enhanced and to rejuvenate the Seppeltsfield Village over time through sympathetic wine-related redevelopment"
Foster's retains the rights to the Seppelt brand for table and sparkling wine, which will continue be based at the Seppelt Great Western winery, purchased by Benno Seppelt in 1918. "
"We are committed to growing Seppelt and its reputation for Australia's most awarded sparkling and regional wines, Mr O'Hoy said. "We are confident that under the Seppeltsfield name, a new and successful chapter in Australian fortified wine has begun."
Under the sale agreement, Foster's and Kilikanoon have entered long term lease and supply contracts over around 100 hectares of premium Shiraz and Grenache vines. In addition, Foster's will continue to manage maturation stores and Kilikanoon will process grapes for both fortified and table wines for Foster's at the site.
"Foster's is to be congratulated for having the respect for tradition embodied by Seppeltsfield, as well as patience in the sale process to ensure that a suitable party was found to maintain, and further develop, that tradition", said Kilikanoon Chairman, Bruce Baudinet. "We look forward to a close ongoing working relationship"
The transaction is due to be completed over coming months. Details of the sale agreement are confidential but not considered material to Foster's.
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Contacts:
Foster's Group Limited
Media Investors
Sue Rana Chris Knorr
Tel: +61 8 8301 5880 Tel: +61 3 9633 2685
Mob: +61 427 849 933 Mob: +61 417 033 623
Kilikanoon
Nathan Waks
Chief Executive Officer
Mob: +61 (0) 403 398 193
Additional Information:
Seppeltsfield (Barossa Valley)
The Seppeltsfield property was purchased by Joseph Seppelt in 1851 and is today dedicated to the production of premium fortified wines. Its blue stone cellars hold around 9 million litres of fortified wines including stocks of the now famous 100 year old Para Liqueur Vintage Tawny. The 185 hectare property includes the National Trust listed historic homestead and approximately 100 hectares of surrounding vineyards.
Kilikanoon
Kilikanoon is a premium boutique Australian wine maker based in South
Australia's Clare Valley. Rated as 5 stars by James Halliday's Australian Wine Companion and considered as "one of Australia's best-run wineries" by Robert Parker, Kilikanoon was founded by winemaker Kevin Mitchell in 1997. Kilikanoon now exports to 25 countries. Its flagship wines such as "Oracle" Shiraz have had considerable success in major international and Australian competitions.
Details of Transaction
The sale includes the Seppeltsfield winery, Cellar Door, approximately 100 hectares of surrounding vineyards, the majority of Seppelt fortified wine stocks currently on site, fortified brands names including Para, Solero, Trafford, Old Trafford, Mt Rufus and an exclusive license for the Seppeltsfield brand for fortified wine.
Foster's will continue to retain ownership of key fortified wine stocks on site which will form the basis of Foster's fortified wines portfolio moving forward. Wines such as Penfolds Great Grandfather and Grandfather will continue to be managed and matured at Seppeltsfield, marketed and sold by Foster's.
Foster's will also lease-back the Seppeltsfield vineyard and process the majority of fruit ensuring ongoing access to high grade Shiraz and Grenache varietals.
The sale will be finalised in coming months, and at that time, the existing Foster's Seppeltsfield Cellar Door will cease operations. Foster's was advised by Oaktower Partnership on the sale.
