Some 60 vintners and staff will be out of a job after Australia's biggest producer announced it will close one of its Victorian wineries.
ASX-listed Treasury Wine Estates said it will shutter its commercial Karadoc winery by mid-2024, citing rising production costs and a customer shift away from budget plonk.
It was a challenging time for the sector, chief supply officer Kerrin Petty said but the change would allow the company to focus on its luxury brands.
"Making the decision to close a site is something we take very seriously and is a last resort after we've looked at all other possible options," Ms Petty said.
"Globally, the wine industry is seeing consumers shift away from commercial wine (less than $A10 a bottle)."
Treasury Wine Estates is Australia's biggest wine producer by revenue and total production.
Karadoc winery has operated since 1973 and makes wine for brands including Lindeman's, Wolf Blass and Yellowglen.
Ms Petty said Karadoc's 60-odd workers would be helped to find new employment in the local winemaking industry.
"Our Karadoc teams have been making quality wines for 50 years and should be proud of everything they've achieved in that time," Ms Petty said.
"We're privileged to have some of the best winemakers and producers in the world at this winery and we're grateful for their contribution to the business and the broader wine industry."
The company plans to sell the site after its closure, as well as vineyards in Lake Cullulleraine in northwest Victoria and Yankabilly in southwest NSW.
"We continually review our global vineyard assets to ensure they're in the best possible places to grow our premium and luxury portfolio," Ms Petty said.
