Treasury Wine Estates (TWE) has agreed to sell Australian wine brand Seppelt to Aaron Drummond, co-owner and CEO of Victoria-based Stonier winery, and his partners.
The transaction marks another step in TWE’s strategy to streamline its brand portfolio and focus on a smaller number of core assets.
Announced on 21 September, the deal includes the Seppelt brand, the historic Great Western winery and the Drumborg vineyard near Portland in southwest Victoria. Financial terms were not disclosed, and the transaction is expected to close in October.
Seppelt to remain under Victorian ownership
For Seppelt, the deal represents a change in corporate ownership while keeping the brand and its production operations in Victoria.
Angus Lilley, Managing Director of TWE’s Australia, New Zealand and Europe operations, described Seppelt as a distinctive part of Australian wine history, highlighting the generations of winemakers, viticulturists and local communities associated with the brand.
The incoming owner, Aaron Drummond, also emphasised Seppelt’s historical importance and its role in Australian sparkling wine and fine wine. His plans indicate an intention to build on the brand's existing heritage rather than reposition it as an entirely new proposition.
A wine heritage dating back more than 150 years
Seppelt's history stretches back to the 19th century. Joseph Seppelt established the original Seppeltsfield operation in South Australia's Barossa Valley in 1851, while the Great Western winery was founded in 1865. The Great Western operation became part of Seppelt in 1918.
The brand subsequently became part of Foster's Group and entered the Treasury Wine Estates portfolio following Foster's corporate demerger in 2011.
Great Western has particular significance in Australian wine, especially for sparkling wine and cool-climate production. The region and Seppelt's long association with it have helped establish the brand as one of the country's historically recognised wine names.
Part of a broader TWE portfolio shake-up
The Seppelt sale follows a strategic review announced by TWE at its June investor day. The company said it intended to create a more focused brand portfolio and a simplified production footprint, including the potential disposal of non-core brands and assets.
TWE indicated that it wanted to reduce its brand portfolio from 76 brands to fewer than 30.
The strategy reflects a broader effort by the Penfolds owner to concentrate resources around its priority brands and markets. Alongside the Seppelt transaction, TWE has also been reviewing its Americas business and has sold a California winemaking facility to drinks co-packer Mercenary Premier.
For TWE, therefore, the Seppelt deal is not an isolated transaction but part of a wider restructuring of its global wine business.
What the deal means for Seppelt
The change in ownership could give Seppelt greater independence while preserving its Victorian production base. The brand will continue to have access to the vineyards and winery included in the transaction, while its new ownership brings a direct connection with another established Victorian wine business through Stonier.
Seppelt wines are primarily sold in Australia, with additional distribution in markets across Asia and Europe. The transition will therefore be relevant not only to the Australian wine sector but also to international distributors and retailers carrying the brand.
TWE has confirmed that it is currently consulting with employees at the Seppelt sites. The company said just over a dozen roles are affected, although some employees are approaching retirement and others may have opportunities with the new ownership, depending on future roles and interest.
A new chapter for an established Australian wine brand
The sale represents a significant change for Seppelt after 15 years within Treasury Wine Estates. At the same time, the transaction keeps the brand, its Great Western winery and the Drumborg vineyard under Victorian ownership.
For TWE, the sale demonstrates how its newly announced portfolio strategy is already translating into asset disposals. For Seppelt, it begins a new chapter under ownership that has explicitly highlighted the brand's heritage, vineyards and role in Australian sparkling and fine wine.
The transaction is expected to be completed in October 2026, subject to the relevant completion conditions.
Source: Yahoo Finance