Melbourne, 27 August 2007 - Foster's Group Limited (Foster's) and Kilikanoon today agreed the sale of the Seppeltsfield site in South Australia's Barossa Valley.
The sale includes the historic Seppeltsfield site, winery, vineyards and visitor facilities, the rights to the Para, Trafford, Old Trafford, Solero and Mt Rufus fortified wine brands and the majority of Seppelt fortified wine stock currently on site. Foster's has granted Kilikanoon an exclusive license for the Seppeltsfield brand.
"The Seppeltsfield site is truly unique in the wine world, said Foster's Chief Executive Officer, Trevor O'Hoy." Under Kilikanoon's stewardship, this site will continue as one of the world's great names in fortified wine and retain its place as a great South Australian tourism landmark."
"Seppeltsfield houses the world's greatest collection of fortified wines dating back to 1878 in an unbroken tradition. We are proud to become the next custodians of this priceless national treasure", said Kilikanoon CEO, Nathan Waks. "We will work hard to ensure that Australia's already fine reputation in this area is enhanced and to rejuvenate the Seppeltsfield Village over time through sympathetic wine-related redevelopment"
Foster's retains the rights to the Seppelt brand for table and sparkling wine, which will continue be based at the Seppelt Great Western winery, purchased by Benno Seppelt in 1918. "
"We are committed to growing Seppelt and its reputation for Australia's most awarded sparkling and regional wines, Mr O'Hoy said. "We are confident that under the Seppeltsfield name, a new and successful chapter in Australian fortified wine has begun."
Under the sale agreement, Foster's and Kilikanoon have entered long term lease and supply contracts over around 100 hectares of premium Shiraz and Grenache vines. In addition, Foster's will continue to manage maturation stores and Kilikanoon will process grapes for both fortified and table wines for Foster's at the site.
"Foster's is to be congratulated for having the respect for tradition embodied by Seppeltsfield, as well as patience in the sale process to ensure that a suitable party was found to maintain, and further develop, that tradition", said Kilikanoon Chairman, Bruce Baudinet. "We look forward to a close ongoing working relationship"
The transaction is due to be completed over coming months. Details of the sale agreement are confidential but not considered material to Foster's.