Australian Wine Holdings (AWL) has announced that it is to buy the Bunker Bay wine brand from the Bunker Bay Wine Group as part of a deal worth close to A$675,000.

 AWL reported today that Bunker Bay Wine Group had accepted its offer, which also includes the acquisition of the Bunker Bay brand's labels and goodwill, trademarks, associated licences and marketing material, as well as stock, the plant and equipment and the wholesale distribution licence.

The offer is subject to the completion of due diligence and valuations by AWL, which said the acquisition price was subject to an independent review and valuation of stock, plant and equipment. The offer provides for the consideration to be payable in AWL shares.

AWL expects to have settled the deal by 30 June 2002 and it is anticipated that the acquisition will be earnings enhancing by 2003.
 
Bunker Bay generated sales of over 17,500 cases of branded, non-branded and private label wines in the financial year to 30 June 2002.

AWL executive director Tony Taylor said: "The acquisition of the Bunker Bay assets provides AWL with an "in-house" sales and marketing resource and will be used as a tool to develop markets for the AWL's existing and expanding group of brands.
 
"In the current environment where good distribution is difficult to secure, it made commercial sense for AWL to develop its own centralised resources to manage the sales and marketing process" he said.
 
The Bunker Bay acquisition provides AWL with a number of brands including "Vinetribe", "Bunker Bay", "Left Handers", Guillotines", "Honeycombs" and "Super Tubes", all well known Margaret River surf
breaks.

The company said it is intended that the Bunker Bay "Surf Series" brands will be separated from the wholesale sales and distribution activities and developed into a stand alone wine brand, aimed primarily at the lifestyle market. This is likely to include the development of a  "surf focused" wine tourism facility on a prominent Margaret River site.