CONSTELLATION CONSOLIDATES AUSTRALIAN OPERATIONS
In other Constellation news, the company said it is consolidating the winemaking and packaging operations in its Australian subsidiary Hardy Wine Company. The company claims it has nothing to do with the impending drought, but is instead meant to eliminate excess capacity and capture greater efficiency in its global wine production infrastructure.
“Similar to other production-oriented businesses, we must periodically refine our global production footprint and this is an example of our pro-active approach to address marketplace macro trends. We always look for ways to improve our operational efficiency and improve profitability,” said Rob Sands in a statement.
The consolidation will take place between the Buronga winery, Australia’s biggest, and Berri Estates winery, based in the River Murray inland regions of central Australia. As you’ll recall, wineries that are dependant on the Murray irrigation system are the ones suffering most from the current drought.
In other words, winemaking during the 2008 vintage will be moved to the company's Berri Estates operation in the South Australian Riverland from Buronga, resulting in the loss of 70 jobs at Buronga, according to local reports.
The company's regional manager for the Riverland and Sunraysia, Paul Casobaum, says the Buronga winery will continue to operate as a grape processing facility and viticultural staff will continue to service local growers.
The consolidation is expected to save the company more than $5m annually by the end of fiscal 2009.
“Similar to other production-oriented businesses, we must periodically refine our global production footprint and this is an example of our pro-active approach to address marketplace macro trends. We always look for ways to improve our operational efficiency and improve profitability,” said Rob Sands in a statement.
The consolidation will take place between the Buronga winery, Australia’s biggest, and Berri Estates winery, based in the River Murray inland regions of central Australia. As you’ll recall, wineries that are dependant on the Murray irrigation system are the ones suffering most from the current drought.
In other words, winemaking during the 2008 vintage will be moved to the company's Berri Estates operation in the South Australian Riverland from Buronga, resulting in the loss of 70 jobs at Buronga, according to local reports.
The company's regional manager for the Riverland and Sunraysia, Paul Casobaum, says the Buronga winery will continue to operate as a grape processing facility and viticultural staff will continue to service local growers.
The consolidation is expected to save the company more than $5m annually by the end of fiscal 2009.
posted at 11:31 AM
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