According to Andrew Flemming, Coldstream Hills’ senior winemaker, the new fermentation cellar provides “the flexibility and capability required for super-premium fruit handling and winemaking”.

The new facility is named the James Halliday Cellar, a dedication to the winery’s founder.

Flemming said: “It is fitting that we have named the cellar after James. As the Coldstream Hills founder, he has contributed enormously to the winery over the past 25 years.”

Halliday, who now operates as a consultant to the Yarra Valley winery, described the investment as “a strong vote of confidence in the future of premium winemaking in regional Victoria”.

The addition of 16 ten tonne open fermentation vessels in the facility is said to be ‘critical’ to the production of pinot noir, which is - alongside chardonnay, cabernet sauvignon and merlot - Coldstream Hill’s major production grape.

David Dearie, Treasury Wine Estates managing director for Australia and New Zealand, described the facility as “the perfect marriage between traditional winemaking and state of the art technology”.

Treasury Wine Estates is the wine arm of Fosters Group.