What happens when you put people who know nothing about wine in charge of wine businesses?
Nothing good for wine lovers.
Star Australian wine producers Oakridge, Chapel Hill and Josef Chromy are all set to be sold after new Endeavour Group CEO Jayne Hrdlicka - who knows a lot about aviation - announced plans to sell most of the company's vineyard and winery assets.
Endeavour will target $300 million in savings as Hrdlicka, formerly in charge of Virgin Australia, launches a turnaround plan to lift the struggling giant’s business profitability.
The changes were the first major announcement from Hrdlicka, who started in the role in January.
Endeavour is the largest liquor retailer in Australia, with brands that include Dan Murphy’s and BWS chains.
The plan appears to be to cut back on premium products and concentrate on bulk.
Yarra Valley winery Oakridge, under winemaker David Bicknell, has been one of Australia's best premium producers for two decades. Chapel Hill in McLaren Vale is a historic producer of top-notch wines led by talented Michael Fragos.
The company’s winery operations will be cut from seven sites to three. Endeavour will retain Cape Mentelle in Margaret River, Isabel Estate in Marlborough, New Zealand, and bulk production factory Dorrien Estate in the Barossa.
Hrdlicka said she remained committed to the Pinnacle Drinks business, which offers distribution channels and private-label wine brands, saying it was generating strong returns.
Hopefully the star brands find sympathetic owners focused on quality so Endeavour can concentrate on bulk labels and the bottom line. The decision reflects an apparent 'quantity over quality' mentality.
No comments:
Post a Comment