Wine giant cuts assets

The restructure of its Australian operations announced by the world's largest beverage company Constellation Wine Australia could be just the start of a glut of wine industry assets on the market by the end of this year.

The company will be putting three of its winemaking facilities on the market, valued at about $200 million, rationalising its packaging operations, increasing prices, cutting its workforce and shedding about a third of the labels under its brand names.

At the same time, another beverage giant, Foster's Group, is also reviewing its Australian wine operations and there is speculation in the business media that the industry could be seeing a preview of the outcome.

CWA will be selling its winemaking facilities at Clare and Padthaway in South Australia, and Mount Barker in Western Australia, streamlining its product portfolio and adjusting fruit sourcing requirements to suit.