Matthew Deller, Larry Jacobs and Marc Dobson. Images courtesy Wirra Wirra
In a show of confidence for the future of premium Australian wine, the families behind Wirra Wirra and Ashton Hills have acquired Adelaide Hills producer Hahndorf Hill.
Founded in 2002 by Larry Jacobs and Marc Dobson, Hahndorf Hill is known for its pioneering production of alternative Austrian varieties, and was instrumental in the introduction of Grüner Veltliner to the Adelaide Hills region.
Larry Jacobs said the couple are delighted to be “in very good hands”.
“Marc and I are thrilled that Wirra Wirra will be taking over the reins,” said Jacobs. “The Wirra Wirra team has all the skills and enthusiasm to take Hahndorf Hill to the next level.”
“We see this as an act of custodianship,” said Matthew Deller MW, CEO of Wirra Wirra. “We are not taking over—we are carrying forward.”
“At a time when the Australian wine industry is facing real challenges, we’re choosing to invest in quality, authenticity and long-term growth. Larry and Marc have created something truly special. Hahndorf Hill fits perfectly with our vision for the future.”
Deller said that this opportunity was not something the group was actively on the lookout for, however one that was simply too good to pass up.
“We had just done analysis on 10 years of Ashton Hill, and when we went through the analysis with the board who represent our family shareholding, I asked them, would you do it again? And they said yes.”
The question quickly evolved. “Well, if we would do it again, then why don’t we?” asked Deller.
“When we saw Hahndorf Hill for sale, it felt very similar to Ashton Hills, but different enough to be a compelling fit within the portfolio—a very differentiated varietal mix, but equally pioneering, admired, hugely acclaimed.”
Undaunted by the current pressures facing the wider industry, Deller had a clear vision for the future.
“The wine business can be as complicated or as simple as you want it to be, but if you’ve got great wine, then there’s always a market.
“Ashton Hills we’ve built into a position where we have an oversubscribed wine club, the wines are highly allocated… if you’ve got wines that are distinctive and great, then the challenges that are facing the broader industry are not relevant.”
The acquisition adds depth to the group’s presence in the Adelaide Hills, complementing its ownership of Ashton Hills in Picadilly Valley and its portfolio as a whole.
“There’s virtually no overlap between the three wineries,” Deller explained. “[At] Wirra Wirra, our focus is on Shiraz, Cabernet Sauvignon and Grenache from McLaren Vale. Ashton Hills focuses on Pinot Noir and Chardonnay from Picadilly Valley, and then you’ve got Hahndorf Hill, which is Grüner Veltliner, Pinot Grigio and Blaufrankish, St. Laurent and Zweigelt from Hahndorf.”
This acquisition also adds variation to the group’s distribution channels, which Deller said will allow them to build relationships with new and varied consumers.
“I think it’s important not to compete with yourselves as much as possible, because you’re already competing with everyone else.”
Wirra Wirra is part of the Samuel Smith & Sons portfolio, and Ashton Hills is part of the Negotiants portfolio—both distributors which are owned by Hill Smith Family Estates, whereas Hahndorf Hill is distributed nationally by Domaine Wine Shippers.
“We’re getting not just a differentiated portfolio, but we’re getting differentiated distribution routes as well,” said Deller.
Pockets of opportunity
Now more than ever, the old adage applies, said Deller: if you’re not growing, you’re dying.
“I think that’s particularly true now, because you need to grow share to stay still at the moment …the wine industry globally is shrinking 4% per year. So if you’re not growing at least by that much in market share, then you’re actually going backwards.”
The decision to expand with the Hahndorf Hill acquisition was not made lightly—Deller explained that he had poured a thorough amount of research and time into examining consumer studies and retailer shopper data to understand where opportunities lay within the industry.
“I know enough to not be intimidated by the overarching decline, and I know where the pockets of opportunity are,” he explained, “and Hahndorf Hill fits very neatly into the pockets of opportunity.”
This purchase, combined with the recent addition of a further six hectares of vineyard space neighbouring the Ashton Hills property in Picadilly, will assist the family-owned business in its organic growth.
“We haven’t had enough Ashton Hills wine for the last three years now to come even close to satisfying demand,” said Deller.
“We’re not just positioning the group for current growth, but for generational growth as well, and that’s really important to our family ownership.”
The announcement is a rare good-news story for the Australian wine industry—anchored in premiumisation, regional strength, and a long-term commitment to Australian family ownership.
Jacobs and Dobson will retire from the wine industry following the transition, leaving behind a legacy of pioneering spirit and precision winemaking.
In April, Hahndorf Hill’s 2023 Reserve Grüner Veltliner was named Best Wine from Australia at the Frankfurt International Wine Trophy and outshining over 2,300 global entries. It also took top honours in the Grüner Veltliner category—beating some of the best from Austria and Germany.
The Hahndorf Hill portfolio includes four expressions of Grüner Veltliner, a 12-variety white field blend, rosé, Pinot Grigio, Shiraz, and small-batch reds including Blaufränkisch, St. Laurent, and Zweigelt.
Demand is out there for the right wines, and Deller explained that being considered about both the current climate and the future potential were equally important for a family-owned business in the wine industry.
“It just comes down to the wines in the bottle, everything else is detail. Get the wines right in the bottle, and people will beat down your door—that’s what we’re working on.”
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