The Randall Wine Group has made 15 employees redundant in recent weeks as part of a business restructure, according to a report in InDaily.
Warren Randall told the publication the company was scaling back on “any of those things that are not revenue producing”.
The move comes in the year Seppeltsfield is celebrating its 175th anniversary.
The Randall Wine Group recently closed the Gemtree cellar door in McLaren Vale and the Seppeltsfield deli.
Wineries in Australia are facing multiple challenges including an oversupply, reduced alcohol intake and rising business costs.
There was an interest rate rise this week and a worsening fuel crisis linked to the Middle East conflict is adding to the pressure on businesses.
The Barossa – and many other regions – are in the middle of vintage.
“We’ve got trucks delivering those grapes to the wineries using diesel,” Randall told InDaily.
“And our biggest issue right now is fuel costing us money – 35 percent more than it did six weeks ago – which is a cost we just haven’t budgeted.”
Rising petrol prices are beginning to be felt at cellar door, many of which are already struggling.
“A drive to the Barossa uses fuel, and people are trying to conserve it to get kids to school or do their shopping,” he says.
“So yes, it is concerning.”
Randall says he is undertaking a review of the company’s vineyards.
“We’ll be having a look at making our vineyards redundant,” he says.
“It’s not just human redundancies.
“Wine Australia should be saying to every vineyard owner in this country: ‘You need to remove a third of your vineyard holdings for the sake of this country’.”
WBM – Australia’s Wine Business Magazine, has heard of redundances at other wineries in the Barossa this week.
Recent Comments