The wine industry in Australia has been rocked by the sudden sacking of Australian Vintage CEO Craig Garvin, throwing into turmoil the potential merger with Accolade Wines, the country’s second-largest wine producer.
The decision to terminate Garvin’s employment was made public after the market closed on Friday, with Australian Vintage citing conduct that displayed a lack of judgment and was inconsistent with the company’s values and high standards for its CEO.
Despite the shock departure of Garvin, Australian Vintage has assured shareholders that the merger talks with Accolade Wines will continue, although there is no certainty that a transaction will ultimately take place.
The proposed merger comes at a time of significant upheaval in the Australian wine sector, with ownership changes and challenging market conditions. The merger would see Australian Vintage brands McGuigan, Tempus Two, and Nepenthe joining forces with Accolade Wines’ Hardys, Petaluma, and Grant Burge labels.
In the wake of Garvin’s departure, Australian Vintage has appointed non-executive director Peter Perrin as acting CEO while the company searches for a permanent replacement. Perrin, who brings decades of experience in the wine industry, will lead the company during this transition period.
Despite the uncertainty surrounding the CEO change, investors have remained steady, with Australian Vintage shares trading unchanged following the announcement. The company’s board has thanked Garvin for his contributions over the past four years, including navigating the challenges of the COVID-19 pandemic and implementing a strategic plan to transform the business.