Winemaking Tasmania going into voluntary administration doesn't reflect on the state's broader wine sector, says Wine Tasmania chief executive Sheralee Davies.
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The Tasmanian wine and cider producer entered the administration with the appointment of Andrew Yeo and David Vasudevan of Pitcher Partners. Mr Yeo and Mr Vasudevan will oversee continued trading of the company while an independent assessment is undertaken regarding the future of the company.
"The key point is recognising the broader Tasmanian wine sector, which is indeed performing very well, as we do have those facts and figures to back up, but within our sector, there are individual businesses that are going to certainly come across challenges, and that's just the reality," Ms Davies said.
"I think it's important to reflect that today's announcement isn't a reflection on the Tasmanian wine sector. It's an isolated incident."
The business supplies winemaking, bottling and production services to more than 30 boutique vineyard and orchard brand owners across the state. Ms Davies said there are multiple contract services available within the state to offer these services.
Ms Davies said for the company's involved it's business as usual.
"There is a process that needs to be worked through, and I think it is appropriate for us to let that work its course.
"I'd like to see all of our wine businesses that are focused on the long term have every best opportunity at success. I think if setbacks do occur along the way, I think it's important that they get the appropriate support for us as an organisation but also from extern experts to help them set themselves up in the best way possible for the future."
She said there were a lot of different business models in operation across the Tasmanian wine sector and that it wasn't an easy sector.
"There are a lot of pressures that we face, natural pressure, financial pressures, market pressure. There are a lot of challenges that we need to confront, and each different business will need to navigate through that. Obviously, if we do see a business that is experiencing difficulty then we hate to see that, of course. But I think this is a process that needs to be worked through."
The first meeting of the company's creditors will be held on June 3 in Hobart.
Mr Yeo said they would be working with creditors, the business and staff to provide as much certainty as possible while the voluntary administration process is underway.
