Southern Premium Vineyards (SPV), the Public Sector Pension Investment Board (PSP Investments) platform that owns Australian vineyards, and Casella Family Brands (Casella) have announced they have entered into a long-term strategic partnership under which SPV will acquire a number of vineyards from Casella.
The partnership covers vineyards totalling 7,215 hectares across 35 properties in South Australia and New South Wales, with associated water entitlements, plant and equipment.
SPV, which currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley regions of South Australia, has also entered into a long-term grape supply agreement with Casella.
Under the terms of the partnership with Casella, SPV will take on management of the vineyards and all associated employees.
“We are pleased to be entering this partnership with SPV, a platform of PSP Investments, which is an investor with a proven track record of successful long-term investment in agribusiness in Australia and around the world,” John Casella, CEO of Casella Family Brands, said.
“We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of its employees.”
“SPV’s strategy is to offer wine companies a multi-regional grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards – and a partnership with Casella is a perfect fit with this strategy,” said SPV director Nick Gill.
“Our commitment to sustainable farming combined with our long-term investment horizon allows PSP Investments to lever Australia’s unique global competitive position for its quality wine grapes,” said Marc Drouin, senior managing director, Real Assets and global head of Natural Resources Investments, PSP Investments.
“Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions. This acquisition is a cornerstone investment for both SPV and PSP Investments’ global wine portfolio.”
Casella has plans to grow its wine business in Australia and internationally. Proceeds from the sale will be reinvested into the Casella business to achieve this.
Casella is Australia’s largest family-owned winery and Australia’s largest exporter by volume. Its flagship brand (yellow tail) accounts for approximately 17 per cent of all Australian exported wine. It has been awarded the world’s number 1 Most Powerful Wine Brand for five years in a row by Wine Intelligence’s Brand Power Index.
PSP Investments has a diversified portfolio of long-term Australian agricultural investments and partnerships, including in irrigated farming, broadacre crops, beef and dairy cattle, wine grapes, tree nuts, fruits and vegetables, with a focus on a long-term investment philosophy and commitment to employee health and safety, responsible stewardship of natural resources and positive community contributions.
The partnership has been approved by the Foreign Investment Review Board.