Sydney/Griffith, November 28, 2022: Southern Premium Vineyards (SPV), the Public Sector Pension Investment Board (PSP Investments) platform that owns Australian vineyards, and Casella Family Brands (Casella) are pleased to announce they have entered into a long-term strategic partnership under which SPV will acquire a number of vineyards from Casella.
The partnership covers vineyards totalling 7,215 hectares across 35 properties in South Australia and New South Wales, with associated water entitlements, plant and equipment.
SPV, which currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley regions of South Australia, has also entered into a long-term grape supply agreement with Casella.
Under the terms of the partnership with Casella, SPV will take on management of the vineyards and all associated employees.
John Casella, CEO of Casella Family Brands, said: “We are pleased to be entering this partnership with SPV, a platform of PSP Investments, which is an investor with a proven track record of successful long-term investment in agribusiness in Australia and around the world. We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of its employees.”
SPV Director Nick Gill said: “SPV’s strategy is to offer wine companies a multi-regional grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards – and a partnership with Casella is a perfect fit with this strategy.”
Marc Drouin, Senior Managing Director, Real Assets and Global Head of Natural Resources Investments, PSP Investments, said: “Our commitment to sustainable farming combined with our long-term investment horizon allows PSP Investments to lever Australia’s unique global competitive position for its quality wine grapes. Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions. This acquisition is a cornerstone investment for both SPV and PSP Investments’ global wine portfolio.”
Casella has plans to grow its wine business in Australia and internationally. Proceeds from the sale will be reinvested into the Casella business to achieve this.
Casella is Australia’s largest family-owned winery and Australia’s largest exporter by volume. Its flagship brand [yellow tail] accounts for approximately 17% of all Australian exported wine. It has been awarded the world’s number 1 Most Powerful Wine Brand for five years in a row by Wine Intelligence’s Brand Power Index.
PSP Investments has a diversified portfolio of long-term Australian agricultural investments and partnerships, including in irrigated farming, broadacre crops, beef and dairy cattle, wine grapes, tree nuts, fruits and vegetables, with a focus on a long-term investment philosophy and commitment to employee health and safety, responsible stewardship of natural resources and positive community contributions.
The partnership has been approved by the Foreign Investment Review Board.
About Casella Family Brands
Casella Family Brands (CFB) is Australia’s largest family-owned wine company based in Yenda, New South Wales. Led by Managing Director John Casella, it was propelled to the forefront of the export arena in 2001 by its hugely successful [yellow tail] brand. CFB is proud to offer a range of distinct and outstanding wines for every price point and occasion. In addition to [yellow tail], CFB offers a growing stable of fine wines, including Casella Family Wines, Peter Lehmann Wines, Brand’s Laira, Morris of Rutherglen, Baileys of Glenrowan, and Atmata.
For more information, visit www.casellafamilybrands.com.
About Southern Premium Vineyards
Southern Premium Vineyards (SPV) owns and operates wine grape vineyards in Australia’s finest wine grape regions including the Barossa Valley, Coonawarra and Limestone Coast regions of South Australia. Established in 2021, SPV offers wine producers a grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards. SPV is wholly owned by the Public Sector Pension Investment Board and sits within its Natural Resources Group.
About the Public Sector Pension Investment Board
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $230.5 billion of net assets under management as of March 31, 2022. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.