National media this week has reported that Casella Wines, the business behind one of Australia’s most successful win export labels – Yellow Tail – is seeking to pass the enterprise to the second generation of Casellas.

The estate of the late Maria Casella, co-founder of Casella Wines, will be spread between her three sons John, Guiseppe and Marcello. 

“It’s great to see the Casellas keeping the business in family hands,” Mr Simpson said

“When there’s an external takeover, we see shareholder profits and dividends become to main focus,” he said. 

When that’s the case, the wine operators don’t always act in a way that’s in the interest of the Riverina economy and community, said Mr Simpson

Riverina’s winemakers have largely been successful in retaining control of their businesses, and over the past decade its been very rare for a family to lose control of their enterprise to outside investors. 

Mr Simpson said the family could have made a fortune by selling their enterprise. 

“Given the strength of the family brand, the Casellas would have been fielding offers left, right and centre,” he said.  

Mr Simpson has no concerns about the growing prominence of Casella Wines within the Riverina wine market. 

“If they are not making money, we are all in trouble,” he said.  

Mr Simpson also thinks the national media focus on the so-called Casella buyback may be over blown.  

“It’s only because of the size of the business that this has been getting media attention. It’s a routine financial process that happens when there is a death in a family,” Mr Simpson said. 

Casella Wines was launched as a small enterprise by Fillipo Casella in 1969.

It is now Australia’s biggest exporter of wine to the United States.