NZ Wineries Face Major Shake-Up
Australia's second largest wine company, BRL Hardy announced tonight(Friday) that it plans an offer to take full control of NZ's third largest wine company, Nobilo Wines.
The announcement follows yesterday's announcement by the DB Group, NZ's second largest brewer, that it plans to sell Corbans Wines, NZ's second largest wine company.
Earlier in the week, Lion Nathan, NZ's leading brewer, announced that it had acquired 19.9% of the country's largest wine company, Montana Wines.
BRL Hardy last week lifted its stake in Nobilo from 25% to 40% by buying the shares of an investment group. It now plans to bid for the remaining 60%, offering NZ$1.05 for 35% of the shares and NZ$1.15 for the 25% stake held by the Nobilo family, in recognition of "the strategic nature of their holdings."
The offer values Nobilos, at about NZ$50m.
The company produces about 3.5m litres of wine a year compared with Corban's 9ml and Montana's 20ml.
BRL Hardy's managing director, Stephen Millar, is bullish about Nobilo's prospects, claiming it is NZ's fastest-growing wine company in a market which has the potential to increase its exports by 20% a year.
Millar said today that BRL Hardy would be interested in considering making an offer for Corbans - with a view to merging it with Nobilo.
Analysts are predicting a price of between NZ$130m and NZ$200m for the winery which has had about NZ$37.5m invested in it in the past two years as it attempted to switch from an emphasis on bulk to premium wines, currently running at 60:40.
DB's half-yearly results showed that Corbans had made a loss. Its CEO and chief winemaker have left the company this year.
Southcorp is being tipped as an interested party. So is Foster's although it is understood not to have shown any interest since rumours of a Corban's sale arose earlier this year.
The rumours followed an offer by Singaporean-based APB Breweries for a full-takeover of the DB Group. The offer closed with APB, jointly controlled by Heineken and diversified Singapore group, Fraser and Neave, gaining 75% of shares.
DB managing director, Brian Blake, said the divestment was the finale in the exiting of DB's non-core assets. Blake revealed a half-year EBIT increase of 34% to $NZ31.3m, net profit lifting 11% to $NZ15.2m.
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....
In spite of trying to buy up Southcorp, Foster's could itself be a takeover target in the near future, according to press reports....
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 ...
Foster's Group has extended its Southcorp takeover offer for a third time....
Heineken has acquired a 40% stake in a Chinese brewery....
Spanish winery Bodegas Faustino Martinez is to invest €50m to expand its manufacturing facilities and promote its Ribera del Duero and La Mancha original labels, local newspaper El Correo reported....
Heineken Espana is looking to invest heavily in a new plant in southern Spain....
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Diageo Africa president O'Keeffe on beer & spirits
- Travel Retail needs a disruptor - Comment
- What the future looks like for Australian wine
- Diageo ready to lock horns with AB InBev in Africa
- Heineken sees Tesco pull SKUs in UK
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Diageo unveils Blender's Batch in the US
- Heineken mulls M&A with $1.75bn notes issue
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Spirit Market in the Top 5 European Countries to 2021 - Market Size, Development, and Forecasts