Seppelt Wines sold to Stonier in major Australian wine deal

Seppelt Wines, one of Australia's oldest and most renowned wineries, has been sold to family-owned Stonier Wines as part of Treasury Wine Estates' plan to reduce its portfolio.

The sale includes Seppelt's vineyards and winery at Great Western, in western Victoria, and its Drumborg vineyard near Portland in south-west Victoria. The terms of the deal, expected to be finalised in mid-October, have not been disclosed.

Seppelt, founded in 1851 by the Seppelt family in South Australia, has a rich history in Australian wine. The family acquired Hans Irvine's vineyards at Great Western in 1918. Stonier Wines, a pioneering estate on the Mornington Peninsula that returned to local family ownership in 2022, plans to restart production at the Great Western winery, which has been largely dormant since 2014.

Big plans for Seppelt

Aaron Drummond, Stonier's chief executive officer and co-owner, said he was drawn to Seppelt after working in the Great Western wine region at the Mount Langi Ghiran winery for many years.

"It was incredibly exciting to see the potential of the region," he said. "The quality of what we can produce in the Grampians and Great Western is extraordinary."

Drummond outlined plans to utilise Seppelt's winery and historic underground cellars. The winery, which can process about 8,000 tonnes a year, is currently not in use.

"The winery facility is a considerable facility that was processing about 8,000 tonnes a year but is currently crushing nothing," Mr Drummond said. "Our hope is to put a couple of thousand tonnes through that facility."

Stonier also plans to make commercial use of Seppelt's underground cellars, which have been largely a tourist attraction.

"We want to get them working again," Mr Drummond said. "They're the most phenomenal natural cooling environment, so it makes sense to us, and so we'll store all our top sparkling wines in them."

A positive move for Seppelt

Angus Lilley, Treasury Wine Estates' managing director for Australia, New Zealand and Europe, welcomed the sale to Stonier.

"Seppelt holds a distinctive place in Australian wine, with a proud history shaped by generations of winemakers, viticulturists and people across the business and its local communities," he said. "For the people who know and love Seppelt, it's a positive move that keeps the brand in Victorian hands."

The sale marks a shift from corporate to private ownership for Seppelt, which was acquired by Treasury Wine Estates in 2011. The deal is the first brand sale since Treasury announced plans to slash its brand portfolio in June.

Swimming against the tide

The wine industry is currently facing challenges from falling global demand, historic oversupply, and low prices. However, Drummond expressed optimism about the future.

"The wine industry is in probably the toughest cycle it's been in for a few decades, but the reality is that if you get the farming right and you get the wine quality right, the premium wine market is going ok, and there is growth," he said. "It's a bloody risky time, but it's also calculated, and the thing about this brand is it has a heap of love and people want to see it go well."

Drummond emphasised Stonier's focus on quality over quantity.

"Trying to make more wine doesn't make sense, but making better wine that can compete at a global level and really focusing on fine wine — I think there's a really lovely market for us," he said.