Vinarchy, the Australian wine group formerly known as Accolade, has further strengthened its international presence with the acquisition of two well-established South African wine brands—Flagstone and Kumala. While the financial details of the deal remain undisclosed, the move underscores Vinarchy’s continued global ambitions.
The acquisition comes shortly after Vinarchy took over Pernod Ricard’s still wine portfolio and aligns with its ongoing expansion strategy. The company, which recently moved its headquarters to Adelaide, was bought out of near-bankruptcy two years ago by a consortium of international investors led by Bain & Co.
Flagstone, which operates out of Somerset West, is located on the site of a former De Beers dynamite factory, while Kumala’s wines are produced across several prominent regions in the Western Cape, including Olifants River, Paarl, Stellenbosch, and Worcester.
Vinarchy’s growing portfolio now includes an impressive array of global wine brands, such as Jacob’s Creek, Hardys, St Hugo Petaluma, and Orlando from Australia; Brancott Estate, Stoneleigh, Church Road, and Mud House from New Zealand; and Campo Viejo, Ysios, Tarsus, and Azpilicueta from Spain.
Ben Clarke, Vinarchy’s Executive Chair, emphasized the importance of South African wine in the company’s strategy. “South African wine is an important category for our retail customers, particularly in Europe and the UK,” Clarke said. “Flagstone and Kumala are key players in that market. While these brands will retain their individual identities, being part of Vinarchy’s global network provides them with significant advantages.”
Clarke further highlighted the expansive reach of Vinarchy’s distribution channels. “We are incredibly proud to share our wines across the globe,” he stated. “Our portfolio caters to every taste and budget, ranging from premium fine wines to some of the world’s most popular global brands.”
In addition to its recent acquisitions, Vinarchy has also signaled its intention to streamline its operations. Clarke recently revealed plans to reduce the number of its labels, potentially cutting as many as 50 from its Australian portfolio, as part of efforts to increase business efficiency.
The cost-effectiveness of South African wine production also played a role in the acquisition. According to Dr. Erna Blancquaert, a lecturer at Stellenbosch University, labor costs in South Africa make the region an attractive option for wine production. “Labor accounts for 60% of any vineyard’s operating costs, and in South Africa, we have sufficient labor available,” she explained. This contrasts with more labor-intensive regions like Australia, where producers are increasingly turning to mechanization due to high labor costs.
With the addition of Flagstone and Kumala, Vinarchy continues to broaden its portfolio, positioning itself as a formidable player in the global wine market.
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