TWE sells iconic Blossom Hill Winery

Treasury Wine Estates selling spree continues - it has sold the iconic Blossom Hill Winery on California’s Central Coast to Napa-based Delicato Family Vineyards.

The sale follows TWE offloading the historic Ryecroft winery and adjoining vineyard in McLaren Flat to Seppeltsfield Wines and putting two New Zealand vineyards - Hawke’s Bay’s Dartmoor Vineyard and Matheson Vineyard - on the market.  

The terms of the deal to sell Blossom Hill Winery weren’t disclosed.

The acquisition does not include any brands, but will be used to support Delicato growing its capacity by 4 million cases annually.

Blossom Hill Winery - established in California in 1992 - will now be called Alba Coast Winery,

The Blossom Hill label is a key one for TWE. The brand is the No.1 selling white wine in the UK by both volume and value, the No.1 rosé and the No.2 red wine brand.

Blossom Hill came into the Treasury portfolio as part of its $754 million acquisition of the United States wine business of Diageo.

TWE chief executive Mike Clarke's strategy in buying the Diageo portfolio was to acquire its premium Californian red wine brands. The Sydney Morning Herald reported he "reluctantly agreed to also take the Blossom Hill brand", a UK-focused brand that was more in the "cheap and cheerful" segment.

The brand launched in Australia last year. Distinct from the range available in the UK, Blossom Hill wines sold in Australia is sourced and made in Australia.

TWE’s Managing Director for Australia & New Zealand, Angus McPherson, said: “The phenomenal success of Blossom Hill lies in its accessible, uncomplicated, fruity style. This is a style that has strong appeal for the millennial consumer and can help recruit a new generation of wine lovers in Australia. I believe Blossom Hill provides the perfect complement to TWE’s existing brand portfolio.

“We know that many people simply want to enjoy their wine, not to debate it or be confused by it. Our research shows that wine shopping can be intimidating; in contrast Blossom Hill is accessible and approachable where taste is the priority."