Endeavour Group (ASX:EDV) said it plans to exit or sell non-core winery as well as agricultural assets, reduce its own grape production by over 80%, and concentrate investment on high-performing brands with proven retail demand within its Pinnacle Drinks business, according to a Wednesday statement.

This is expected to result in around 99% flexible sourcing of purchased bulk wine and grapes from the viticulture market.

It also plans to streamline production and packaging to a smaller number of high-scale sites. Winery operations will be consolidated from seven sites to three, with Cape Mentelle in Western Australia, the Dorrien Estate in South Australia, and the Isabel Estate in New Zealand being retained.

It will seek a new owner for the Oakridge brand and operation in the Yarra Valley. The Chapel Hill, Riddoch Coonawarra, and Krondorf Barossa brands will be retained, but their vineyards and physical assets are expected to be sold. Chapel Hill operations will close at the end of June.

The firm does not intend to renew its lease of Josef Chromy, and assets associated with the business are under review.

A high-scale packaging facility will be retained at Vinpac Angaston in the Barossa Valley in South Australia. The Vinpac McLaren Vale bottling facility will close later in the year.

Endeavour Group's shares fell 4% in recent trading on Wednesday, reaching their lowest-ever point.