Treasury Wine Estates leases vineyards to increase wine production
Treasury Wine Estates (TWE) is leasing vineyards in California’s Napa Valley and Australia’s Barossa valleys to retrieve grapes and produce wines to meet their growing demand in global market.
According to the October 2012 report of the International Organization of Vine and Wine, the recent bad weather had resulted in destruction of harvests in regions from France to Argentina thereby resulting in shortage of grapes.
TWE CEO David Dearie told Bloomberg.com that the company had witness increase in sales of its wines in China and was struggling to source enough grapes to produce the wines.
"The big challenge right now is we've got more demand than we have supply for luxury wines," he added.
"A lot of people who own these fantastic properties don't want to sell but they actually don't want to farm it either, so we offer to lease it."
To increase its production, the company has already purchased 630ha of vineyards in Barossa and Eden Valleys and Wrattonbully region.