Two Rivers will contribute an additional 1.6 million cases of wine to McGuigan Simeon’s production.

Managing Director, Brian McGuigan, is adamant that new, targeted vineyard developments such as this are vital if realistic growth projections are to be met.

“Contrary to popular belief, Australia does not have enough vineyards planted with the varieties we need for future sales,” McGuigan said. “Our reading of the international market indicates we need to add another 10,000 tonnes of grapes to our production every year for the next five years to satisfy wine demand,” McGuigan said.

Two Rivers currently has 550 acres under vine, and an additional 1150 acres will be in by October.

“This is the fist year of this expansion stage. We will start another project of similar scale next year.”McGuigan’s plans are vindicated by a report released days after the vineyard sale was finalised in early July. KPMG’s Surrendering the Advantage? found the real risk facing winemakers today was lack of confidence and a reluctance to plant new vineyards. The paper called it a “paralysis” that, if continued, will result in an under-supply of wine and make Australia’s industry vulnerable to other world producers.

McGuigan Simeon currently owns and leases 13,000 acres of vineyards. The company is the second largest vineyard holder in Australia. McGuigan’s eye is firmly placed on number one in the world, currently held by Southcorp.

“We are attacking large scale viticulture in a fully mechanized way. We have systems in place to build vineyards cost-effectively and quickly, and maintain their quality with efficiencies we only dreamed of five years ago,” McGuigan said. “This is what sustains our competitive edge despite inflation of the Australian dollar.”

Two Rivers is predominantly planted to white varieties, balancing the company’s major red plantings of recent years. Sauvignon Blanc accounts for 400 acres, demonstrating McGuigan’s belief that the variety will offer the most significant growth in domestic sales over the next decade. Pinot Grigio will also figure highly in future McGuigan releases with 200 acres to be planted, alongside 100 acres each of Riesling and Traminer.