Australian winemaker, pub group and liquor chain retailer Endeavour Group has hinted it sees opportunities to further increase the size of its portfolio.

In an interview with The Australian Financial Review, Endeavour CEO Steve Donohue said “challenges in the wine industry” meant more distressed wine assets than ever were on the market, but said the company would remain disciplined in its spending.

Last year, Endeavour Group, which owns the BWS liquor chain, completed the purchase of Shingleback Wine in South Australia’s McLaren Vale. The group followed this up by buying Cape Mentelle Winery in the Margaret River, West Australia from LMVH in January.

Donohue said pressure across the industry was forcing more wine businesses to put assets up for sale.

“It’s obvious there are a multitude of assets that are being brought forward,” he told AFR. “There are certainly some challenges in the wine industry at the moment.”

He added: “One thing I can assure investors is we will continue to be very disciplined around any acquisitions.”

Earlier this month, Accolade Wines placed its House of Arras sparkling wine business and the Bay of Fires brand up for sale, the latest in a sale of a number of its wine assets across Australia.

Domestic rival Treasury Wine Estates has also faced challenges and is looking to offload its Bordertown and Langhorne Creek vineyards in South Australia.

Last week, meanwhile, Tempus Two brand owner Australian Vintage cancelled dividend payments citing “hyper-inflationary” costs and declining demand for its wines as consumers cut back on their spending.

Endeavour Group has been publicly listed on the Australian stock exchange for the last two years, after a demerger from Woolworth Group in June 2021.

Woolworths kept a 14.6 per cent stake in the Paragon Estates brand owner, but in December last year sold off A636m in shares, thereby reducing its stake to 9.1%.