Treasury Wine Estates have announced that 33 jobs will be cut as a result of the closure of McLaren Vale’s Ryecroft Winery.
TWE said that all affected employees will be able to apply for jobs at other sites or seek redundancy entitlements, ABC News reports.
According to TWE, the move was driven by a need to improve efficiencies, and that the Ryecroft site had been running at half capacity for several years.
"The decision to stop operating Ryecroft winery was an extremely difficult one and is certainly not a reflection on the experience or capability of the team working there," said Peter Taylor, director of wine production, Ryecroft Winery.
"This is a tough but necessary action that TWE has to take. We have several wineries within our production footprint and need to ensure that they operate at the highest possible capacity to maximise the efficiencies of our network."
The Ryecroft site was used predominately to produce Rosemount wines, and TWE says that the brand would continue to be made with fruit from other wineries.
In May this year, TWE announced that it would cut 175 jobs in a move to invest more heavily in marketing and promoting its brands.
In April, chief executive of TWE, Michael Clarke admitted that “there is a lot that needs to be fixed” at TWE, and confirmed that the company needed to address its costs structure in order to improve shareholder value.