7. Constellation sells up
Constellation, the world’s biggest wine company, agreed in January to sell 80% of its Australian and British wine business to Champ Private Equity of Sydney in a deal valued at around AUD$290 million.
The transaction included almost all of Constellation’s Australian, UK and South African brands, wineries and vineyards, as well as its 50% stake in Matthew Clark.
As a result of the deal, Constellation Wines Australia and Europe was renamed Accolade Wines by its new owners.
Brands within the Accolade portfolio include Australian heavyweights Hardys and Banrock Station, Kumala and Fish Hoek from South Africa and US brand Echo Falls.
Observers questioned the timing of Champ’s entry into the wine market at a tricky time for the industry, but John Haddock, managing director of Champ, remained confident that the strength of Accolade’s portfolio puts the company in a healthy position.
“I think everyone knows there are a number of challenges facing the wine industry but it’s an important industry and we will be enthusiastic advocates for it,” he said.
“We see Accolade Wines as a company with strong fundamentals, a sound competitive position, a capacity to grow and an opportunity to re-invigorate its brands.”
Speaking of the company’s strategy following the rebrand, chief executive officer Troy Christensen said: “Our vision is about getting more people to enjoy our wines, our strategy is to drive value growth and enhance profit and margins in key markets including the UK and Europe by using consumer and category insight to build our brands and drive industry leading innovation.
Explaining the rationale behind the new name, Christensen added: “The new name Accolade Wines is all about applauding everything we do and celebrating our key company assets – our award-winning wines and facilities like Accolade Park and our great people.
“It’s also about being recognised for responding quickly to customer and consumer needs.
