Last updated on October 29th, 2023 at 08:24 pm

Accolade Wines, which has range of Australian wine labels, says it will shed 175 jobs in South Australia.

Accolade Wines, which has range of Australian wine labels including Hardys, says it will shed 175 jobs at Reynella in southern Adelaide.

Accolade and Treasury Wine Estates (TWE) say they have reached reciprocal bottling and packaging contracts.

Treasury will pack wine for Accolade in Australia and Accolade will pack wine for TWE in the UK market.

Chief supply officer for TWE Stuart McNab said the new arrangement would still make the most efficient use of the assets of both companies.

“We have put a big focus on increasing efficiencies in our supply network and this new arrangement with Accolade will leverage these efficiencies by utilising spare capacity in our Australian facilities,” he said.

Accolade CEO Troy Christensen agreed it would give a boost to both Accolade and TWE.

“This agreement is important for the thousands of people in Australia and globally who rely on our business, including employees, customers, grape growers and other suppliers,” he said.

Mr Christensen said it meant 175 employees at Reynella will be made redundant, as Treasury took over the Australian packaging.

“All employees made redundant will receive their full redundancy entitlements and further support in the form of outplacement services to help find new jobs,” he said.

He said about 20 of the redundancies were due to a separate arrangement for Accolade Wines to outsource its Reynella warehousing and distribution to MacKen Accolade Wines, which has range of Australian wine labels including Hardys, says it will shed 175 jobs at Reynella in southern Adelaide.

Accolade and Treasury Wine Estates (TWE) say they have reached reciprocal bottling and packaging contracts.

Treasury will pack wine for Accolade in Australia and Accolade will pack wine for TWE in the UK market.

Chief supply officer for TWE Stuart McNab said the new arrangement would will make the most efficient use of the assets of both companies.

“We have put a big focus on increasing efficiencies in our supply network and this new arrangement with Accolade will leverage these efficiencies by utilising spare capacity in our Australian facilities,” he said.

Accolade CEO Troy Christensen agreed it would give a boost to both Accolade and TWE.

“This agreement is important for the thousands of people in Australia and globally who rely on our business, including employees, customers, grape growers and other suppliers,” he said.

Mr Christensen said it meant 175 employees at Reynella will be made redundant, as Treasury took over the Australian packaging.

“All employees made redundant will receive their full redundancy entitlements and further support in the form of outplacement services to help find new jobs,” he said.

He said about 20 of the redundancies were due to a separate arrangement for Accolade Wines to outsource its Reynella warehousing and distribution to MacKenzie Hillebrand facilities at Outer Harbor in Adelaide.

“We are working with Treasury and separately with MacKenzie Hillebrand on plans that we anticipate will see us fully transitioned by January 2013,” he said.

“It will allow us to put more effort into growing the sales of Australian wine in Asia and North America.”

Mr Christensen said a changing market had created surplus bottling capacity, such as at Reynella, which was hampering the Australian wine industry.

“We’ve been slowly reducing the staffing of that facility and unfortunately it just gets to a point where the fixed costs are just too high,” he said.

“We’ve been trying to reduce our staffing and run what we have more efficiently but unfortunately the fixed cost overtakes any sorts of efficiencies you can run and you have to make a significant shift.

“For a number of years we have researched alternatives to avoid outsourcing our Reynella bottling and distribution facility, including relocating assets within the business. No other option delivered such long-term benefits.”

Banrock Station, Berri Estates, Renmano and Houghton are among other Accolade wine labels.

TWE, which has brands including Penfolds and Lindemans, recently announced a new chairman, Paul Rayner, who will take over from September and made three new board appointments”We are working with Treasury and separately with MacKenzie Hillebrand on plans that we anticipate will see us fully transitioned by January 2013,” he said.

“It will allow us to put more effort into growing the sales of Australian wine in Asia and North America.”

Mr Christensen said a changing market had created surplus bottling capacity, such as at Reynella, which was hampering the Australian wine industry.

“We’ve been slowly reducing the staffing of that facility and unfortunately it just gets to a point where the fixed costs are just too high,” he said.

“We’ve been trying to reduce our staffing and run what we have more efficiently but unfortunately the fixed cost overtakes any sorts of efficiencies you can run and you have to make a significant shift.

“For a number of years we have researched alternatives to avoid outsourcing our Reynella bottling and distribution facility, including relocating assets within the business. No other option delivered such long-term benefits.”

Banrock Station, Berri Estates, Renmano and Houghton are among other Accolade wine labels.

TWE, which has brands including Penfolds and Lindemans, recently announced a new chairman, Paul Rayner, who will take over from September and made three new board appointments.

© ABC.net.au

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