UPDATE: US: Brown-Forman sells Bolla winery

By just-drinks.com editorial team | 19 September 2006

Brown-Forman has insisted it remains committed to "rebuilding" its Italian wine brand Bolla after selling its namesake winery.

A spokesman for the US wine and spirits group said the sale forms part of the company's plan to reduce the cost of sourcing grapes both in Italy and California.

Brown-Forman announced last night (18 September) that it has sold the Bolla winery to Italian wine group Gruppo Italiano Vini for an undisclosed sum.

The deal will see GIV produce Bolla wines for the company and act as distributor in Italy. Brown-Forman will keep the rights to the Bolla trademark.

The spokesman told just-drinks: "Selling the Bolla facility to GIV means that we can source wine from any of GIV's wineries around Italy and hopefully reduce the cost of goods and return the brand to profitability."

The spokesman said that Brown-Forman had built Bolla to the stage where it was the leading premium imported wine in the US. "We are committed to rebuilding the brand and we will re-invest in the brand," he said.

The spokesman declined to comment on Brown-Forman's strategy to revive Bolla sales, which fell 5% in the year to 30 April.

Sectors: Spirits, Wine

Companies: Brown-Forman