Vinarchy to slash dozens of wine brands in strategic overhaul

Newly formed wine giant Vinarchy, resulting from a merger between Accolade Wines and Pernod Ricard's wine division, is set to cull dozens of brands from its portfolio in a major strategic shift. 

The Bain Capital-led consortium, which owns Accolade Wines, aims to reduce the combined 150-brand portfolio to about 100 over the next 18 to 24 months.

Executive Chairman Ben Clarke said the consolidation would allow greater investment in key brands such as Hardys, Jacob's Creek, and Campo Viejo.

The restructuring reflects a growing industry trend toward premiumisation, echoing Treasury Wine Estates' (ASX:TWE) move to focus on its flagship label, Penfolds.

Clarke confirmed that the first phase of cuts would impact brands including Beaumont, &Then, and Brooke James in Australia, as well as Trackers Crossing in the US.

Many brands to be discontinued are private-label wines produced for supermarkets and liquor retailers and represent roughly 4% of the group's overall revenue.

Vinarchy is controlled by a consortium including Samuel Terry Asset Management, Sona Asset Management, Intermediate Capital Group, and Capital Four.

The shake-up comes as the global wine industry faces challenges from changing consumer preferences and international trade barriers.

While Australian wine exports have surged 41% to $2.64 billion, boosted by the lifting of Chinese trade restrictions, the US market remains difficult, with exports falling 9% to $323 million.