Mr Aughey met with Constellation Wines Australia senior vice president Peter Dawson at the company’s head office in Reynella.

He was accompanied by council chief executive officer Roy Blight and Paul McInerney, representing the Office of Regional Affairs as area manager for the Mid North Regional Development Board.

Mr. Dawson confirmed the company’s intention to restructure the wine business, emphasising that these plans were driven by the dynamics of the global wine market and questions of business profitability.

Memorandums of Information will be available through wine industry brokers and advisers, Gaetjens Langley, within the next two weeks for two vineyards.

Mr Dawson confirmed that Constellation would seek to sell the Leasingham Winery complex in Clare as a going concern.

Full details will be contained in a Memorandum of Information to be released near the end of November.

Nevertheless, he said the company was committed to the continued sourcing of its grapes from the Clare Valley region to meet its future requirements for the Leasingham brand.

Mr Allan Aughey responded by pointing to the long standing association of the Leasingham name with the Clare Valley, and in particular with the original establishment of the township of Leasingham in 1850.

He emphasised the significance of the Leasingham Wines business to the region through direct employment in the Leasingham winery and the company’s vineyards, supply contracts with grape growers, and the purchase of goods and services from local enterprises.

He also expressed concern that the disconnection of the brand from the winery and its production base in the Clare Valley would result in the company diminishing and relaxing its regional focus.

Mr Dawson offered the reassurance that the market focus for Constellation Wines Australia was founded on regional wines as reflected in the company’s vision statement.

Constellation intended retaining the Leasingham name and aimed to increase its market position as a premium wine.

Mayor Aughey thanked Mr. Dawson for the opportunity to hear the latest details on the company’s restructuring plans, but strongly represented the Clare Valley position that it was “highly desirable that the vineyards and winery continue as going concerns.” He expressed the hope that Constellation might be successful in its quest to ensure the continued full operation of the vineyards and winery.