Australian Vintage has secured the termination of one of its grape-growing contracts in Australia about three years earlier than planned.
The tie-up, with Fresh Country Farms, concerns the Millewa Vineyard in Victoria’s Lake Cullulleraine area, about 300km east of Adelaide. The agreement, which took effect last week and has resulted in an AUD2m (US$1.3m) “exit fee”, draws to a close an arrangement that was “due to expire after the 2028 vintage”.
According to the McGuigan brand owner, the move came about in light of its estimate that its “wine intake has reached a peak in vintage 2025”. The group also flagged that an unspecified number of its long-term grower contracts are set to “roll off over the next three years”.
“Millewa produces a majority of red varietals with the exit removing varietals that in excess of demand, generating a relative net cash flow benefit of over AUD8m (US$5.2m) over the remaining three-year lease term,” the company said.
Three months ago, CCO Tom Dusseldorp was promoted to take on the role of CEO following the departure of Craig Garvin.
