AUSTRALIA: Lion Nathan looks abroad for wine acquisition

Most popular

Is craft spirits approaching a reset moment?

'Healthy alcohol - the trend to watch in 2019?

The beer category in 2018 - Review

The beer category in 2019 - just-drinks predicts


Australian beer and wine group, Lion Nathan, has said it is looking to the US, South America or South Africa for its next major wine acquisition.

Lion Nathan managing director, Gordon Cairns, said a big-volume purchase in Australia would run the risk of diminishing the premium status of its fledgling wine division, comprising Petaluma and Banksia. Rather, Cairns was quoted by the Sydney Morning Herald as saying, the company would be looking to transplant its unique strategy and establish a niche premium wine operation in another New World wine market.
"When you're at the top end (of the wine market) it is difficult to significantly increase scale because you lose that premium standing," Cairns said. "The opportunity is to take this model to another country."

Last year, Lion Nathan acquired the Petaluma and Banksia wine businesses for A$370m. Both are relatively high margin/low volume operations. Before that the company lost out in an auction for the largest New Zealand wine company, Montana, which was eventually acquired by Allied Domecq for A$800m.

While Lion Nathan now has a significant wine operation there has been little indication to date concerning its future strategy for the wine sector. Analysts had expected the group to make another major volume-orientated acquisition in Australia to build mass in the home market.

Wine contributed A$3.4m before tax to the group's earnings before interest, tax and amortisation of almost A$207m for the six months to the end of March. Lion Nathan has said that it will not make another wine acquisition during this financial year which ends in September.

Related Content

Kirin set to offload Lion Dairy & Drinks

Kirin set to offload Lion Dairy & Drinks...

Why Australia will be the wine to watch in China in 2019 - Analysis

Why Australia will be the wine to watch in China in 2019 - Analysis...

"Consumers are smarter than ever before - and not just about wine" - just-drinks meets E&J Gallo Win...

"Some in the wine industry need to acknowledge that businesses need to make money" - just-drinks tal...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?