Casella Family Brands to sell off Australian vineyards to focus on brand-building

Yellow Tail owner brand owner Casella Family Brands has unveiled its plans to sell off significant tracts of its vineyards in Australia.  

“The Casella family is seeking a strategic partner to own and operate a significant proportion of its vineyard portfolio in South Australia and the Riverina region (NSW),” said the company in a statement. “The vineyards will be sold in one line.”

The decision by the family-owned company comes after a strategic review of the business, which concluded that the business would be better served by diverting its funds into brand building rather than being vineyard owners. Managing director John Casella said the sale would be structured in such a way so that long term supply agrements would remain in situ for the vineyards to feed into the Casella wine brands.

The successful buyer will acquire some 7258 hectares of vineyards, across 35 properties in South Australia and New South Wales. This includes a range of top vineyards located in Australia’s renowned wine regions, including the Barossa Valley, Clare Valley, Langhorne and Currency Creek, Limestone Coast and the Riverina.

“A long-term sale agreement will ensure Casella retains the wine grapes from these vineyards to ensure ongoing supply for its established brands. Some Casella-owned vineyards located in the Riverina and Barossa are not included,” said the company. 

Casella said the company was in a “sound financial position” and had experienced global record sales for Yellow Tail during the COVID-19 pandemic.  “While demand has stabilised, we are forecasting future growth due to ongoing investment in our brands supported by a strategic innovation pipeline,” he said.  

Founded in 1969, Casella Family Brands is Australia’s largest family-owned wine company. The firm markets a large portfolio of brands including Yellow Tail, Casella Family Wines and Peter Lehmann Wines

The company has appointed Colliers’ Tim Altschwager and Nick Dean to handle the sale and aunch an Expression of Interest for the vineyard holdings and associated land/property.

Yellow Tail, arguably Australia's most recognised label in global markets with its distinctive kangaroo logo, was launched by Sicilian migrant Filippo Casella and his son John, and it quickly became the biggest selling imported wine in the US.