On Friday, the Australian Financial Review reported an investment bank had been appointed to review the value of Casella Family Brands' wine business, including its biggest and most popular brand, Yellow Tail.

Casella's business, which employs around 700 people and accepts wine grapes from around 500 growers, was estimated to have a value of around "$500 million plus".

The speculation started with the sale of Accolade Wines for $1 billion last year.

Accolade produces the Banrock Creek and Hardys wine labels.

Meanwhile, French company Pernod Ricard is believed to be selling its Australian wine business which includes the well-known brand, Jacob's Creek.

The AFR suggests private equity firms could be aiming to create one of the nation's largest wine producers by combining Pernod Ricard's Australian business with Casella Family Brands or with Accolade Wines.

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Casellas issued a statement on Friday rejecting the speculation it was up for sale.

"Casella Family Brands would like to advise it has not commenced a sale process for the business," the statement read.

"There has been strong interest in the sector, driven by the recent sale of Accolade Wines and the rumoured sale of the Pernod Ricard Wine assets, and Casella Family Brands has received a number of approaches over an extended period of time from a range of investors in relation to the Casella Family Brands business.

"The company will continue to invest in the growth of its portfolio of brands including [yellow tail], Peter Lehmann Wines, Brand's Laira, Morris Wines of Rutherglen and Baileys of Glenrowan."

The Casella family is valued at $1.57 billion, and ranked as the 55th wealthiest family in Australia, according to the Financial Reviews's 2019 Rich List.

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