Treasury Wine Estates (TWE) and Accolade Wines have signed an agreement as per which TWE would pack for Accolade Wines in Australia while Accolade would bottle for TWE at its UK Bristol plant.
Accolade plans to scale up production by 30% at its Avonmouth plant in the UK while cutting the work force by 175 people in its Reynella facility in Australia.
The move aims at increasing their volumes in the six months time to meet planned packaging target volumes by January 2013.
Accolade chief executive Troy Christensen claimed the move is significant for the Australian Wine industry.
According to TWE, the company has concentrated more on increasing efficiencies in its supply network and hoped this collaboration with Accolade would leverage efficiencies by using Australian plants’ spare capacities.
TWE CEO David Dearie said both businesses compete in the global wine market and the new arrangements will enable them to better capitalize on their resources and gain from synergies