The property arm of Victorian listed wine group Cheviot Bridge is on the hunt for wineries in Margaret River, joining several other east-coast operators interested in buying a slice of the premium wine region.
The property arm of Victorian listed wine group Cheviot Bridge is on the hunt for wineries in Margaret River, joining several other east-coast operators interested in buying a slice of the premium wine region.
Cheviot Bridge managing director Maurice Dean said Cheviot’s listed property trust company, Cheviot Kirribilly Vineyard Property Group, wanted to acquire vineyards or wineries in Margaret River primarily because of its growing popularity with consumers of semillon sauvignon blanc blends.
“One of the reasons we are having a look is because there are some ‘sweet spots’ that Australian consumers like,” Mr Dean told WA Business News.
“They like cabernet from Coonawarra, shiraz from the Barossa, semillon sauvignon blanc from Margaret River and pinot noir from the Yarra Valley.”
Representatives from Cheviot’s property group visited Margaret River in the past fortnight on what Mr Dean described as an “information tour”.
While declining to name who the company had visited, Mr Dean said it was taking a close look at wineries operating managed investment schemes, which are unlikely to be able to promote the projects in the long-term following federal government moves to put an end to non-forestry tax-effective schemes.
But he said they were looking at “anyone with a private vineyard to sell”.
Mr Dean ruled out Evans & Tate as a potential acquisition after the Margaret River winery last week terminated merger talks with US-listed Yarraman Estate, but kept the door open for other proposals.
“They are not on the list,” Mr Dean said.
Geoff Barrett, managing director of MIS-backed Watershed Premium Wines, said Cheviot Bridge had not approached him.
Palandri, another MIS operator, could not be contacted for comment.
LJ Hooker wine sales specialist Brian Moulton said it was the first time in a long while that bigger players were running the ruler over Margaret River assets.
“We have had quite a few people from the east coast coming over here to take a look around,” he said.
“I think that they’re trying to increase their portfolios because of the drought on the east coast. They are going after labels and vineyards.”
Build Your Own Brand wine consultant Andrew Moore said there was strong interest in Margaret River properties from bigger operators but they were chasing quality brands at reasonable prices.
“There’s interest generally from across Australia,” Mr Moore said. “But they are looking for brands with distribution.”
Cheviot Bridge operates as a virtual wine company by outsourcing production and concentrating on marketing and selling wines while the property trust manages vineyards and wineries.
Mr Dean said if it acquired a winery rather than a vineyard, it would split the property assets into Cheviot Kirribilly while the wine brand would be housed in Cheviot Bridge.
Cheviot Bridge claims to be one of Australia’s top 20 wine producers by case volume. Its brands include Thirsty Lizard, Kissing Bridge and the Long Flat Wine Co.
It also sells a Cheviot Bridge Western Australia classic dry white.
