Cranswick sells Haselgrove

Published: 23 July, 2008

Subsidiary sale eases debt burden

Cranswick Premium Wines has sold its Haselgrove subsidiary to the Barrington Wine Company for A$3.5 million. Chief executive officer, Graham Cranswick-Smith, said: "It does not fit with our strategy of producing high-volume wines. Its sale will substantially eliminate Cranswick's debt, apart from the $20 million in convertible unsecured notes, positioning us to capitalise further on opportunities in the market segments where we have a strong presence." The sale includes the winery and 30-acre vineyard in McLaren Vale, the Haselgrove brand and contracts for grape supply. Cranswick keeps its 100-acre Wrattonbully vineyard and 450-acre Loxton vineyard in South Australia, other grape supply contracts from Wrattonbully and Langhorne Creek and the Lost Sheep brand. "We are retaining Wrattonbully as we have great confidence in the potential of this emerging region, which is adjacent to Coonawarra," said Cranswick-Smith. "Our premium wines from Wrattonbully will be marketed under the Lost Sheep brand."

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