Sydney, Australia – Endeavour Group, one of Australia’s largest alcohol retailers, has announced a major restructuring of its wine business, revealing plans to close or sell more than half of its winery operations as part of a broader cost-saving strategy.The company, owner of popular retail chains Dan Murphy’s and BWS, will reduce its winery sites from seven to just three key locations under its Pinnacle Drinks division. The retained sites are Cape Mentelle in Margaret River (Western Australia), Isabel Estate in Marlborough (New Zealand), and Dorrien Estate in the Barossa Valley (South Australia).
This significant downsizing forms part of a strategic shift to create a more “asset-light, customer-led portfolio.” Endeavour will also slash its own grape production by over 80%, moving to approximately 99% sourcing from the open market. Several well-known brands, including Chapel Hill (closing at the end of June), Oakridge in the Yarra Valley, and Josef Chromy, are affected through sales or lease non-renewals.
Endeavour Group CEO Jayne Hrdlicka said the changes reflect a clear focus on brands and regions that deliver the strongest returns and resonate most with customers. The overhaul aims to deliver A$300 million in total cost savings by fiscal 2029, with A$100 million targeted for 2027.The move comes amid ongoing challenges in the global wine industry, including oversupply, rising costs, and shifting consumer preferences. While Endeavour will retain several premium brands such as Chapel Hill, Riddoch, Coonawarra, and Krondorf Barossa, their physical vineyard and production assets will be sold.This restructuring highlights the tough decisions many large wine groups are making to remain competitive in a difficult market.
Alleyeson.co.za will continue monitoring the impact of these changes on the global wine industry and South African wine exports to Australia.
