NEW ZEALAND: Montana/Corbans plans international growth
A stronger export drive for the companies was immediately forecast by Montana's MD, Peter Hubscher.
"It gives us the critical mass to compete more effective internationally," Hubscher said.
The combined companies have sales of about $NZ320m, about a third the size of Australia's two major companies, BRL Hardy and Southcorp.
Hubscher said that Montana's international growth, despite having strong brands, had been hampered by a lack of supply.
Corbans, conversely, had relatively weak brands but surplus supplies.
The UK, the US, where marketing was at an "elementary" stage, and Australia, where Corbans already had a small salesforce, would be the main targets.
Increased domestic sales were not expected because the two companies already held 90% of the cask wine market, 60% of the sparkling market and 35% of table wine sales.
The current combined crush of about 40,000 tonnes was about 50% of the New Zealand harvest. New plantings would see the crush total about 50,000 tonnes in a national harvest of 150,000 tonnes.
Hubscher said that amalgamations of the two companies' facilities would result from the merger, their Gisborne wineries being 100m apart and the Hawkes Bay wineries also being situated close to each other. The future of the Marlborough wineries was still being considered.
One analyst said that the purchase price, at about 15 times Corbans' forecast EBIT for 2000-1, was "a good price" for the DB Group.
The sale leaves BRL Hardy-owned Nobilo Wines as New Zealand's second largest producer with about 6% of the total wine market.
BRL Hardy MD, Stephen Millar, said today that he expected Nobilo's market share to increase to about 20% within five to 10 years.
MD of DB Group, Brian Blake, said the sale, expected to be finalised in mid-November, completed the restructuring of the group through the divestment of non-core assets.
"We can now concentrate on being a brewer and marketer of beer," he said.
DB Group, New Zealand's second largest brewer, is a subsidiary of Singapore-based Asia Pacific Breweries, jointly owned by Heineken and diversified group Fraser & Neave.
Dutch brewer Heineken is rumored to have released a self-chilling beer can....
ING has raised its target for Heineken's share price after analysing the brewer's options to save costs....
Heineken's CEO-in-waiting has no plan to radically alter the brewer's strategy, he said in an interview today....
Heineken has restructured its top management, in a move that includes the retirement of current CEO and chairman Thony Ruys from October this year....
Heineken said yesterday that its Austrian subsidiary Brau Union AG has signed an agreement for the divestment of its Real Estate Division. This division comprises all non-business related real estate ...
Heineken has acquired a 40% stake in a Chinese brewery....
Heineken Espana is looking to invest heavily in a new plant in southern Spain....
Grupo Empresarial Bavaria is not looking to sell up, its president has confirmed....
- Focus - Edrington's FY Performance by Brand
- Where Beer is Brewed Can Leave a Bad Taste
- Pernod relies on Indian whiskey to crack Africa
- Analysis - Storm clouds lift over Diageo Towers
- NPD: The Clear Soft Drink Trend is Back
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Diageo sells "non-core" Gleneagles
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Tequila insights - market forecasts, product innovation and consumer trends research