However, RWG is also the largest vineyard holder in McLaren Vale with about 800ha under vine.
It owns thxjmtzywree wineries in the region, Tinlins, the Boar’s Rock bulk wine facility and the Ryecroft winery in McLaren Flat.
Penny’s Hill was established by Tony and Susie Parkinson in 1988 and includes the Ingleburne homestead, which is on the main road between McLaren Vale and Willunga.
It exports about 60 per cent of its wine to 15 countries and has a strong foothold in North America, particularly Canada.
Penny’s Hill has won many international awards over the past 25 years and is known for its distinctive “red dot” label.
The winery was put on the market in November after Parkinson announced plans to retire.
“In the face of advancing years and with no clear family succession plan, it was time to find a new custodian for the 1855 estate,” he said.
“Warren has a proven track record of acquiring, respecting and injecting enthusiasm and energy into historic 19th-century Australian wine estates with provenance.
“I trust that he will carry on my legacy and springboard the brands to greater international success under his leadership.”
The Penny’s Hill cellar door and Ingleburne homestead has been sold. Picture: Ben MacMahon
The sale is RWG’s “first strike” in a new strategic direction in response to the Chinese government’s November 2020 decision to apply tariffs of more than 200 per cent on Australian bottled wine.
China had been Australia’s largest market for wine with exports eclipsing $1 billion in 2019.
The tariffs coupled with a bumper 2021 vintage have resulted in an oversupply of wine in Australia amid predictions of looming aggressive price discounting domestically by major players Coles and Woolworths.
“Following a very high-quality vintage in 2021 it was time to reset the company’s strategy and pivot away from the Chinese market, which is a shame because the Chinese wine consumer loves the fruit and taste profile omnipresent in Australian wines,” Randall said.
Randall Wine Group had previously been heavily invested in the Chinese market with its aggressive vineyard buy-up in recent years initially targeted at boosting supply to the booming Chinese market.
RWG’s flagship winery Seppeltsfield also opened a wine chateau in China in 2017 in a joint venture with Minquan Jiuding Wine Company Ltd. It was the first Chinese chateau to have a part ownership stake by an Australian winemaker.
