Treasury Wine Estates agreed to sell its Seppelt brand and production assets in Victoria to Stonier Wines co-owner Aaron Drummond and investment partners.
The deal covers the historic Great Western winery, its cellar door, surrounding vineyards and the Drumborg vineyard near Portland for an undisclosed sum.
Asset cull targets balance sheet relief
Removing the assets clears non-core production operations from the winemaker’s balance sheet before the end of the year. Treasury Wine Estates told investors at its June Investor Day that shedding peripheral labels would help deliver $100 million in structural savings. That target follows a full-year loss of nearly $650 million. Chief executive Sam Fischer has directed capital away from commercial-tier regional labels. He is concentrating resources on global luxury lines led by Penfolds.
Drummond’s consortium takes full control of Seppelt intellectual property and inventory. Drummond serves as chief executive of Mornington Peninsula producer Stonier. Operations at the 160-year-old Great Western site and the cool-climate Drumborg estate will continue under the new ownership group.
What the transaction shifts for regional producers
Offloading regional assets eases operational drag for corporate wine giants coping with elevated inventory costs and uneven consumer demand across major Asia-Pacific channels. The exit by Treasury Wine Estates opens direct access to established heritage infrastructure for boutique operators, distributors, and commercial buyers without corporate overheads. Luxury labels command the bulk of group capital expenditure. Historic mid-market estates now shift to private multi-brand operators who run them on leaner cost bases.
Similar portfolio realignments have occurred across the Australian wine sector as larger listed producers carve out regional production assets to protect earnings. The operational risk lies in vineyard throughput. Shedding crush capacity cuts fixed maintenance costs immediately. Independent buyers must still maintain distribution volume across domestic retail chains to keep the acquired acreage profitable.
Historic production footprint changes hands
Seppelt traces its origins to 1851, when founder Joseph Seppelt established Seppeltsfield in South Australia. The business expanded into Victoria through the Great Western property, which was established in 1865 and incorporated into Seppelt in 1918. The site contains The Drives, a network of cellars excavated by gold miners starting in 1868. It forms the largest underground storage cellar system in Australia.
Drumborg’s vineyards were first planted in 1964 to supply cool-climate sparkling base wine and table fruit from south-western Victoria. Treasury Wine Estates managed the properties under its broad domestic multi-regional supply model. It designated the labels non-core during its 2026 operational review.
Next steps for the settlement
Final settlement of the transaction is scheduled for mid-October 2026, subject to standard commercial closing terms. RetailNews Asia will track the progress of Treasury Wine Estates against its $100 million balance sheet reduction target as the group prepares its next investor update.
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