The move is consistent with changes industry watchers have expected for some time as Australia moves away from exporting a lot of cheap wine, and has led to predictions that vineyards, having recently emerged from a price-depressing grape glut, need to get ready for more pain.

Constellation is reducing its bottling operation, and selling more than 20 vineyards as well as three of its 10 production facilities:

• Clare and Padthaway in South Australia and

• Mount Barker in Western Australia.

"I think facilities like this will attract a reasonable amount of interest despite the current climate," said Jon Gregerson, a consultant with wine industry lawyers Finlaysons.

Constellation, Australia's largest winemaker by grape intake, whose brands include Hardys and Banrock Station, said its exports had been hit hard by the high Australian dollar and by an increase in costs caused by the drought.

But the reduction in the Australian business is part of the company's global effort to cut debt.

The company was known as BRL Hardy when US company Constellation Brands bought it in 2003.

Constellation told the Australian Securities Exchange it had set aside about $6.6 million in employee termination costs.

Constellation Wines Australia president John Grant said the company remains committed to Australia, and that the move would help long-term sustainability.

The move, which comes as part of a shift away from cheaper wine labels and towards premium brands, will involve the company ditching 30pc of its product lines.

Winemakers Federation of Australia chief executive Stephen Strachan predicted vineyards would soon feel the effects of industry shifts.

"The next part of the phase will be for vineyard operators to adjust as well, because there are not going to be companies that are prepared to pay the price they need to be viable," he said.

Constellation Brands shares fell 5.1pc to $2.25.