Hardys producer Accolade Wines has entered a reciprocal bottling agreement with Treasury wine Estates that will see it undertake all of TWE’s bottling in the UK.

In return, Accolade’s products in Australia will be packaged at TWE’s Wolf Blass Winery in Nuriootpa.

The agreement follows the closure of Accolade’s Reynella packaging plant near Adelaide, with the loss of 175 jobs.

Accolade chief executive Troy Christensen said changing market dynamics had created a surplus bottling capacity in Australia, which was “holding back the Australian wine industry”.