AUSTRALIA: Simeon Wines seeks US tie-up
Simeon Wines, Australia's third largest wine producer, has held preliminary talks with several US wineries about a possible merger. Managing director, Neil McKenzie, discussed the move in the past two weeks while in the US.Two of the wineries were of particular interest, he said, not giving further details.McKenzie said that there was increasing interest by US wine companies in Australian companies.Until now they had been "scared" by high earnings multiples but it would only be "a couple of years" before at least one and possibly more major Californian companies made significant investments here. Declining multiples and a current favourable exchange rate ($A1=US60c) has led to the greater interest.McKenzie predicted that Simeon, which had a total crush of 147,000 tonnes in 2000, would crush 170,000 tonnes in 2001 and was confident of domestic and international volume and margin growth in 2000-2001. EBIT, based on existing customer contracts, was forecast to rise by 20%. McKenzie predicted that sales of Big River wines in the US, marketed in a joint venture with Cordier, would increase by 30% and that sales to the UK and Europe would increase by 25% and 20% respectively.Seven German supermarkets had ordered a total 300,000 cases of Kangaroo Ridge label wines for marketing in Olympic Games promotions.Chris Snow
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Has the politics of M&A changed? - Analysis
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- IAADFS Duty Free Show of the Americas - Preview
- Interview, Fever-Tree's founders
- Coca-Cola Co announces senior executive shake-up
- Diageo's Captain Morgan LocoNut - NPD
- Heineken releases colour-change bottles
- Anheuser-Busch readies US executive switches
- Brexit paperwork offers alcohol smuggling opp's
- 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 rum insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends