Major South Australian wine producer Salena Estate Wines has entered voluntary administration, almost a year after it tried to find a buyer.
The family owned Riverland winery behind the plonk stocked at Dan Murphy’s and Liquorland was appointed KPMG administrators Tim Mableson and Ryan Eagle last Thursday.
The Loxton winery and sprawling vineyard, much of which is certified organic, was listed for sale in April last year, along with the estate’s cellar door, restaurant, bottling line, office, restaurant, warehouse, laboratory, and bulk wine storage facilities.
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Administrators are set to have their first meeting with creditors at the Berri Hotel to discuss further action next Tuesday.
The Riverland region is behind most of the Australian wine exported to international markets, and the estate produces 15,000 tonnes of wine annually on average, shipping it out to 10 different countries.
China was the largest export market for Australian bottled wine in terms of value in 2020, and the second largest in terms of volume, according to the Department of Agriculture.
That’s why a punitive tariff on Australian wine introduced by China in 2021 is likely to have impacted the profitability of Salena Estate Wines, along with harvest-crippling floods in the region the following year.
The 191ha winery has been owned by Bob and Sylvia Franchitto since 1998, and was named after their daughter. It also offers bespoke bottling and bulk wine services locally, and is currently for sale via negotiations with commercial property sellers Colliers.
7NEWS.com.au has contacted KMPG for comment.
