Despite rumours to the contrary, Southcorp chief executive Keith Lambert has denied that Southcorp is preparing to flog off some of its brands. Under the spotlight are names like Coldstream Hills, Tollana and Rouge Homme. Some commentators are apparently expecting Southcorp’s new management to instantly make Rosemount-style returns on investment. More realistically, Southcorp should be able to make dramatic changes in its profitability by reducing inherent inefficiencies, by reducing the time taken for large volumes of wine to reach the market and by focusing on its core strengths. While Coldstream Hills has been linked to Petaluma, recent reports of a pending Petaluma offer for Wirra Wirra should just about expend the $28 million recently raised in Petaluma Ltd’s acquisition fund.
