By a staff reporter
Treasury Wine Estates Ltd has inked a deal with Accolade Wines United States that will see Treasury provide wine production and packaging services to Accolade.
The agreement will see Treasury handle contract packaging at its Napa Bottling Centre and production of Accolade Wines will be undertaken at Treasury's Asti winery.
Treasury said the deal will allow it to grow its US footprint using existing capacity.
Accolade has its roots in Thomas Hardy and Sons, which was founded in Australia in the 1800s. It later went on to become Australia's largest winemaker and later became the largest wine company by volume in the United Kingdom as well.
“This is a great outcome for both parties. TWE's increased focus on maximising efficiencies in our global supply network has enabled us to leverage spare capacity and generate additional financial returns for our US operations,” TWE chief supply officer Stuart McNab said in a statement.
“These contracts will help TWE 'win in the Americas' which is a key strategic focus for us in Fiscal 14.”
This isn't the first time the companies have worked together. In July 2012, the two companies signed a deal that saw Accolade cut nearly 10 per cent of its workforce as a result of Treasury taking on the bottling of Accolade wine in Australia, while in return Accolade took on bottling duties of Treasury wine in the United Kingdom.
This latest deal, however, marks the first such agreement Treasury has signed in the United States.
The packaging contract commences this month, while the production arrangements at Asti will get under way with the 2014 vintage.