Barossa Valley Estate

When Barossa Valley Estate was placed in receivership in 2013, a number of Australian wine businesses looked at the opportunity of acquisition, but most observers were surprised when the successful bidder was revealed as NZ-based Delegat’s, and even more surprised at the price of A$24.7 million. Delegat’s’ economic engine is the Oyster Bay brand, its Sauvignon Blanc centre stage. While Barossa Valley Estate only owns 40ha of shiraz, cabernet merlot, grenache, chardonnay and marsanne, it has extensive contracts with the grapegrowers who were its shareholders when the receiver was appointed. Managing Director Jim Delegat revealed that the acquisition was funded through existing bank facilities even though Delegat’s had acquired the Hawke’s Bay Matariki Group for NZ$8.5 million in Jan ’14, this in turn following vineyard acquisitions in ’12. The arrival of Delegat’s has had a dramatic effect; production has increased from 50000 dozens to 141500, and the estate vineyards are now almost touching 300ha, many times greater than the 40ha previously owned. Exports to the UK, the US, Ireland, Canada, Singapore, China and NZ. -JAMES HALLIDAY