Add Category
A prominent regional New South Wales winemaker has fallen into voluntary administration, citing significant financial losses brought about by the COVID-19 pandemic, natural disasters and the Chinese government.
Key points:
- Cassegrain Wines is the largest winemaker on the New South Wales Mid North Coast
- The family-run business says it has appointed voluntary administrators
- Administrators says operations will continue as usual
Cassegrain Wines, based south of Port Macquarie on the Mid North Coast has appointed insolvency firm Shaw Gidley as administrators.
The business is one of the biggest winemaking operations in the region, employing more than 20 staff on site and supplying numerous hospitality venues.
Managing director John Cassegrain, who started the business with his wife Eva in 1980, said in a statement the announcement came with "a heavy heart".
He said the events of the past three-and-a-half years have been "challenging in the extreme".
A perfect storm
Cassegrain Wines does not grow grapes on site, but instead purchases the fruit from other vineyards from across the state and the Australian Capital Territory.
Mr Cassegrain said the company's woes dated back to the 2019-20 bushfire season when 80 per cent of stock from its main grape suppliers was "unmarketable" from smoke taint.
Mr Cassegrain said economic fallout from COVID-19 lockdowns had also taken a toll on the business.
"The COVID pandemic had significant impact on all revenue streams of the business, that we are still recovering from, particularly contract processing and export to Japan," he said.
In years prior, the winemaker was noted for supplying wine to the operator of the Japanese Shinkansen bullet trains.
It made up 20 per cent of total sales.
The company endured another hit in 2020 when China, which at the time was their fastest growing export market, imposed a 200 per cent tariff on Australian wine.
Mr Cassegrain said soaring inflation had added pressure to the business with its electricity costs jumping by 30 per cent in the past 12 months.
He said the factors had created real concerns about the short-term solvency of the business, leaving him with "no choice" but to appoint administrators.
The way forward
The administrators will meet with creditors virtually on June 21.
Mr Cassegrain said the winery would continue to trade as usual in the meantime.
"My immediate focus is to work with all stakeholders to get a positive outcome for the business, staff, and suppliers," he said.
Administrator Scott Newton said Cassegrain was "still open and operating and there is no intention, at this time to consider otherwise".
The Cassegrain's also confirmed that a federally-funded research project in conjunction with Adelaide University which aimed to retract smoke taint from wine would continue.
Two Triple Four restaurant also operates on the Cassegrain's site near Port Macquarie.
Venue director Darren Whitcombe declined to comment at this stage.