Accolade eye up sale of assets

Australia's second largest producer looks to sell off assets to return to profitability.

Accolade Wines own Hardys, Banrock, Petaluma & Echo Falls brands among others and is looking to sell some of its assets to fellow drinks giant Pernod Ricard. According to the Australian Financial Review’s Street Talk, Accolade Wines is looking to raise up to AU $500 million and are in talks with Pernod Ricard who own Jameson's Irish Whiskey, Campo Viejo Rioja and Jacobs Creek.

The need to raise funds was caused by Accolade's difficulty in adapting to Chinese tariffs and their oversupply of grapes from contracted growers in Riverland. In February, Accolade was taken over by a consortium of investors led by US-based management consulting company Bain & Co. Bain is now the largest stakeholder in Accolade after agreeing to buy the company’s debt and take control.

The possible asset sales are running parallel to ongoing discussions for asset sales to Australian Vintage, owner of McGuigan Wines & Tempus Two.