Australian Vintage has sold its Nepenthe cellar door and vineyard at Balhannah in the Adelaide Hills to family business Tomich Wines for $5 million.
The ASX-listed company will retain full ownership of the Nepenthe brand and has established a grape supply contract with Tomich for vintage 2027.
The sale is the latest in a flurry of transactions in the Australian wine industry including TWE selling Seppelt Great Western to Aaron Drummond and Stonier co-owners, and the Tollana brand to Sword Distribution.
Australian Vintage said in an ASX announcement: “The decision is consistent with the company moving towards an asset-light, brand-focused business model that aligned with the company’s long-term strategic goals removal of loss making business units and a continued focus on debt reduction and steadfast commitment to enhancing shareholder value.”
CEO Tom Dusseldorp said, “As wine tourism continues to decline, loss making cellar doors do not add the value they once did.
“The sale of this asset can return cash to the business so the company can pay down debt and generate long-term shareholder value whilst maintaining high-quality standards.
“We will still be sourcing great quality wine from the premium Adelaide Hills region for Nepenthe.
“I want to thank our hard working team in the Hills that this sale has impacted.
“It is never an easy decision to close a business but it was the right time for the next chapter of the Nepenthe brand.”
Adelaide Hills Wine Region president Alex Trescowthick told InDaily the sale was a good outcome.
“AHWR welcomes the news that a strong, local family-owned brand is investing in the future of one of the iconic cellar door and vineyard sites in the Adelaide Hills,” he said.
Nepenthe was established by the Tweddell family – led by Dr Ed Tweddell – in 1994.
The family sold the winery and vineyards to McGuigan Simeon Wines (which became Australian Vintage) in 2007 – two years after Ed’s sudden passing at the age of 64.
Tomich, which has a large vineyard at Woodside in the Hills, was established by surgeon John Tomich.
It is now run by his son, Randal Tomich.
The winery produces Chardonnay, Sauvignon Blanc, Pinot Grigio, Pinot Noir, Cabernet Sauvignon, Shiraz and sparkling wine.
Tomich has a cellar door on King William Road in Unley.
Australian Vintage spent a lot of money on a big upgrade of the Nepenthe cellar door in 2023.
Other Australian Vintage brands include McGuigan, Poco Vino, Passion Pop and Tempus One.
Australian Vintage has signed binding agreements to sell the property with settlement on 9 November 2026.