Winemaker Michael Kerrigan has left popular Margaret River and Denmark producer Howard Park to spearhead the growth and development of Hay Shed Hill, one of several assets sold off by struggling wine group Australian Wine Holdings several months ago.
Winemaker Michael Kerrigan has left popular Margaret River and Denmark producer Howard Park to spearhead the growth and development of Hay Shed Hill, one of several assets sold off by struggling wine group Australian Wine Holdings several months ago.
The sale of Hay Shed Hill settled a fortnight ago, with Mr Kerrigan emerging as a 20 per cent stakeholder in the Margaret River winery. Four directors from Denmark winery West Cape Howe each has a 20 per cent stake in the business.
Mr Kerrigan left Howard Park last month after spending more than a decade making the company’s wines under the Howard Park and Madfish labels.
Howard Park owner Jeff Burch said he had recently appointed a new winemaker but declined to name the new recruit because they were serving out a contract elsewhere.
However, industry sources told WA Business News this week that Millbrook Winery’s Tony Davis will take up the role in the New Year.
Mr Kerrigan said while it was a tough decision to leave Howard Park he was keen to have equity in a business and take on a new challenge.
“I had done a lot with Howard Park but I felt that the next five years would not be like the last five years,” he said.
“Howard Park, next to Houghton, would be the next most prestigious place in the WA wine industry, but I’m not here for the photo shoot. It wasn’t about the prestige, it wasn’t about money; it was about doing something where I could see the results from the decisions I was making.”
Mr Kerrigan, along with West Cape Howe directors Gavin Berry, Robert Quenby, Rinze Brandsma, and Ian Crockett, bought Hay Shed Hill for about $7 million from Australian Wine Holdings after the publicly listed wine group succumbed to the nation’s grape glut and decided to sell-off its winery assets.
Mr Kerrigan is confident he can make Hay Shed Hill successful.
“I’m much more confident than I was six months ago, which is partially due to what is happening on the east coast,” he said.
“They’ve had drought, frost and fire and it will have a major impact on the 2007 and 2008 vintages. That will take the heat out of the bulk wine market and that will take the steam out of the cleanskin market.”
Mr Berry, who will continue to concentrate on West Cape Howe as managing director, said there were plans to develop a winery in Margaret River, but until then Hay Shed Hill’s wine would be produced at the West Cape Howe winery.
Mr Kerrigan said there was enormous winemaking potential at Hay Shed Hill.
“It’s a fantastic site,” he said. “It’s high on the ridge with Houghton-type cabernet; it is on good soil and it has 1975 plantings. There is no reason the cabernet can’t match the very best in the region.
“Can I make the business work? I don’t know, but I’ll have a fair crack at it.”
