AUSTRALIA: Evans & Tate consolidates in UK - update
The Australian winemaker Evans & Tate has announced it has reached an agreement in principle with minority shareholders to purchase the balance of its UK distribution business Australian Wineries (UK) ltd.
E&T acquired a 51% stake in the UK-based sales and marketing company through its acquisition of Cranswick Premium Wines in March 2003.
Franklin Tate, CEO of E&T, said: "Evans & Tate has been keen to obtain 100% of Australian Wineries (UK) and we are please to have been able to reach agreement with our minority shareholders, Mr Julius Barret and Mr Mike Awin."
He added: "As part of the transaction, Julius and Mike will continue to manage the agency and private label business via a newly formed company with a supply agreement from Evans & Tate. This supply agreement will enable them to market a range of Buyers Own Brands and Private labels." The new company will retain the Australian Wineries name.
Barret and Awin will also continue to market E&T brands via the new company to regional wholesalers and the independent sector. Meanwhile E&T will continue to deal directly with large chains, direct shipment customers, dsitributors and European operations."
It is anticipated that the transaction will be completed by June 30th.
In a statement to the Australian Stock Exchange, Tate added that sales to the UK/Europe continue to be strong and the company had not been badly affected by exchange rate exposure hitting so many Australian wine groups.
"The majority of the exchange rate volatility has been between the US dollar to the UK pound, so, to date the group has not been materially affected by exchange rate volatility," he said.
Sales to the UK and Europe represent 27% of the E&T revenue, while 87% of total sales are undertaken in Australian dollars.
Australian wine company Evans & Tate has suffered acutely as grape oversupply and weak exports have combined to hit the Australian wine industry hard. David Robertson reports on the company's woes and...
Evans & Tate has put its Oakridge winery up for sale as part of its plan to focus on its premium wine business....
Evans & Tate risks having to immediately repay A$20m (US$14.7m) to convertible noteholders....
Ailing Australian wine producer Evans & Tate has axed 20 jobs as part of a round of cost cuts it hopes will revive the business....
Evans & Tate has completed the sale of its bulk wine inventory but said it would work with consultants 333 Performance Management for a further three months in a bid to turn around the business....
Evans & Tate has appointed a new chief executive officer....
Evans & Tate may be investigated by the Australian authorities, according to local press reports....
The troubles of Australian winemaker Evans & Tate are increasing, with news today (16 August) that the company now expects to make write-downs of not less than A$16.5m for the 2004/05 financial year....
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Focus - Pernod Ricard's Q1 sales by brand
- Time for Heineken to make a European break
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Whisky downturn slows Diageo's Scotch spend
- Pernod Ricard sees sales lift in Q1