Australia’s Endeavour to slash wine production amid asset sell-off

By Hamish Graham

Published: 29 May, 2026

Australian drinks retailing giant Endeavour Group has announced that it is set to reduce its grape production by 80%. It will also close four of its seven wineries as well as a packaging facility, while selling the vineyards and assets of three key premium brands.

Endeavour will retain the Chapel Hill (of McLaren Vale), Riddoch Coonawarra and Krondorf Barossa brands despite the asset sales. However, it is seeking a new owner and operator for the Yarra Valley’s Oakridge brand.

The changes come amid a “strategic transformation” of its premium Pinnacle Drinks business. Endeavour is also Australia’s largest drinks retailer – owning Dan Murphy’s and BWS – with the company detailing in a statement it is seeking to “concentrate investment on high-performing brands with proven retail demand”.

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Additionally, it detailed that it “does not intend to renew its lease of Josef Chromy. Assets associated with the business are under review and a decision will be made before the end of the lease”.

Brands that will remain under Endeavour’s ownership and operation include Margaret River’s Cape Mentelle; Dorrien Estate in the Barossa; and across the Tasman Sea, Marlborough’s Isabel Estate.

The huge reduction in grape production will see the business focus more on sourcing bulk wine and grapes from the wider market.

Speaking to Australian national broadcaster ABC, Lee McLean, chief executive of Australian Grape and Wine (the trade body that represents the country’s wine producers), commented: “What we are now seeing is that some of that pain has started to spread into more premium regions.

“There is an oversupply situation, not just in commercial product but also in some of our more premium regions as well that needs to be addressed.”

Also speaking to ABC, Erin Leggat, chief executive of McLaren, added: “It's interesting to see someone like Endeavour, one of the most profitable companies in the Australian beverage market not seeing value in some of these iconic brands.

“It signals a little bit of a lack of faith in the region and where it's going.

“That's where the disappointment has come, particularly for the community and the industry, to see one of the big players really pull out of their support for the region.”

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