Cheers to the king of the Barossa Valley

Seppeltsfield Wines co-owner Warren Randall in one of the newly acquired Barossa Vines vineyards yesterday. Picture: Brenton Edwards
Source: The Advertiser

ONE of Australia's most celebrated wineries, Seppeltsfield, has expanded its ownership of vineyards in the Barossa Valley by 500 per cent.

The winery yesterday bought a majority share of the former managed investment scheme, the Barossa Vines Limited Group, in a substantial restructuring of the business that involves the repayment of a major debt to BankSA.

The deal involves about 1050ha of vineyards on 13 properties on the western side of the Barossa Valley, from Greenock to Lyndoch. It comprises 96 per cent shiraz vines and 4 per cent cabernet sauvignon vines.

Seppeltsfield previously owned 200ha of vines in the Barossa.

Barossa Vines once owned land worth more than $60 million in the region.

About 3200 investors in the Barossa Vines Group retain 40 per cent ownership of the vineyards, while 60 per cent has been sold to Seppeltsfield. It will lease the 40 per cent share and take ownership of the grapes. The winery now owns 10 per cent of all vineyards in the Barossa.

Seppeltsfield co-owner Warren Randall said it was expected to lead to a substantial expansion in wine production by the winery with a focus on export markets, particularly in China and India.

The Seppeltsfield group is owned by Mr Randall (50 per cent) and Kilikanoon Wines (50 per cent) from the Clare Valley, owned by Bruce Baudinet and Nathan Waks. The Barossa Vines deal also involves an investment by some senior employees.

Mr Randall said the deal makes Seppeltsfield the largest vineyard holder in the Barossa Valley and probably the largest premium shiraz wine producer in Australia.

"It will allow us to produce significant quantities of A grade Barossa Valley shiraz under senior winemaker Fiona Donald, which we will export or sell ... as premium grade wine," Mr Randall said.