Riverland-based Salena Estate Wines listed for sale in Loxton, SA
A Riverland-based winery that boasts products stocked at bottle shops next to Coles and Woolworths has been offered up for public sale after falling into administration in the wake of Chinese sanctions and the more recent Murray River floods.
Salena Estate Wines Pty Ltd, once named in Australia’s top 20 for wine production, went into administration on February 22, after accruing debts of around $20m, according to The Australia.
Following a meeting with creditors in March, the business has now been listed for sale under the instructions of administrators, receivers and managers, with expression of interest sought by May 24.
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Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Real estate firm Elders and Adelaide-based vineyard and winery sales specialist Woodbridge Iles have been appointed to oversee the sale, which includes the 15,000 tonne winery, a 17 million litre storage facility, 185ha of vineyards and a fully equipped laboratory with a bottling line.
The listing also includes a commercial distillery that has produced gin and vodka and the Salena Estate’s restaurant and cellar door in Bookpurnong, about 10km north of Loxton.
Elders Executive General Manager, Tom Russo, said he expected diverse buyer interest from near and far.
“The Salena Estate Wine business is a vertically integrated enterprise of scale that has been established to a corporate standard,” he said.
“We will be conducting a flexible expression of interest process that will cater for offers to acquire all or part of the portfolio. It will be of interest to a range of both local, institutional and offshore buyers.
“The sale process is being undertaken during a pivotal time for the industry given the recent announcement that China has reversed its punitive tariffs on Australian wine.
“To put things into perspective, the Australian wine industry lost a $1.4 billion export market overnight and now has the opportunity to reinstate its position as a preferred supply to consumers within that vast market.”
Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Salena Estate, 837 Bookpurnong Road, Bookpurnong. Pic: realcommercial.com.au
Russell Iles, Managing Director of Woodbridge Iles, agrees.
“This sale represents an opportunity to acquire significant production capacity and market access which would be extremely expensive and time consuming to replicate,” he said.
Buyers will see value in being able to acquire a quality asset and supported by a renowned stable of brands that provide immediate market presence.”
Established by the Franchitto family in 1998, Salina Estate is one of Australia’s leading organic wine exporters, with products supplied across Asia, the US and Europe.
China was previously a major customer before tariffs, as a result of Covid, were imposed.
The organic wines were also stocked at Liquorland, owned by Coles, and Dan Murphy’s, now owned by Endeavour Group, which split off from Woolworths in 2021.
Its labels included Twisted Sticks by Salena, The Timekeeper and BFR.
The wine company has won a prestigious gold medal at the 2022 Riverland Wine Show, with this accolade among its 1500 trophies and medals.
