Major Riverland wine producer Salena Estate Wines has entered voluntary administration, with China’s crippling tariffs blamed for its financial woes.
The winery has been owned by Bob and Sylvia Franchitto since 1998 and was named after their daughter. Its labels include Twisted Sticks by Salena, The Timekeeper and BFR, with its products exported to Asia, Europe and the United States.
Australian winemakers were hit with prohibitive duties on their imports into China in 2020. Hopes are high that a review of the tariffs will have a positive outcome when a determination is made in March. But the review comes too late for Salena Estate.
Real estate group Colliers has been trying to sell the business for almost a year. Colliers’s national director of transaction services and agribusiness Tim Altschwager confirmed China’s 2020 sanctions had crippled the winery.
“When that trade was ceased, they lost that market which is pretty difficult and then to pick it up elsewhere is quite hard in this market,” he told the Daily Mail.
“Their location was affected by floods as well so it was a bit of a perfect storm. It’s just the industry: they’re not the only ones finding it tough at the moment.”
Administrators Tim Mableson and Ryan Eagle from KPMG were appointed last week to take control of the company, with hopes remaining that a buyer can be found.
In the meantime, Salena has appealed to wine lovers to lend a hand.
In a message posted on social media the winery said: “Hello all, it breaks our hearts to say this, but we have gone into voluntary administration. We are doing everything we can to push through and stay afloat, but we need your help!
“On our website, all wines are 50% off, all 700ml spirits are 30% off and all cello bottles are 20% off.
“We know this is a lot to ask of you with the cost of living what it is, but every little bit counts, and we appreciate it more than we can say.”
Australia wine exports slide as consumers cut back
Australian wine exports declined by 2% in value to $1.90 billion and 3% in volume to 607 million litres in the 12 months to December 2023, according to the latest Wine Australia’s Export Report.
The decline in Australian wine exports comes at a time when most wine producing countries are reporting decreasing sales. The global alcohol market is softening and impacting the entire wine category, especially in mature markets. This trend has been attributed to a combination of global economic tightening resulting in less discretionary spending and consumers being more conscious of their health.