The award-winning winemaker will move from his prominent Beaufort base to the new site on the corner of Remembrance Drive and Powells Road in Cardigan by January.

Mr Unwin said the construction of the massive wine shed will bring grape growing and wine-making to the one site, while strengthening the business's commitment to sustainable practices.

The floor of the wine-making shed and cellar door will be made with compacted earth to align with the principles of the sustainable wine movement.

"You absolutely don't need to have a concrete floor, it is not ideal for wineries," Mr Unwin said.

"Concrete uses an enormous amount of energy in production.

"We monitor all of the energy used and don't use chemicals in the vineyard and will be creating our own power here, fundamentally through solar."

Mr Unwin said the shed will be highly insulated to create a stable temperature and humidity for wine-making.

Machinery at the site is currently preparing the soil for the compact earth floor. The next step will be preparing the site for the installation of the steel shed.

Mr Unwin said moving to Cardigan would bring Michael Unwin Wines closer to its customers, majority of whom live in Ballarat.

Eight full-time staff will move from the Beaufort site to Cardigan when the move is completed.

"We can't wait to have the production on the same site as the viticulture," he said.

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The existing vineyard at the site is four-years-old, while staff are ready to plant another 9000 vines in coming months.

The business will also continue to use grapes from established growers in the Pyrenees and Grampians region.

Michael Unwin Wines has been based at Beaufort since 2004. Mr Unwin and his wife Catherine first started the business in Ararat in 2000.

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