Advini Group and Cordier by InVivo are exploring a merger to “strengthen” their position in the French wine industry.
In a statement issued yesterday (15 December), Advini said it was in “exclusive” talks to combine “certain” activities with Cordier by InVivo, a subsidiary of French agricultural cooperative InVivo Group.
When asked by Just Drinks which specific parts of the business are covered by the negotiations, Advini responded: “The full content of the activities cannot be disclosed at the moment and will be shared in due time when the negotiations come to an end.”
The Languedoc-based wine producer said the proposed deal would give it access to a more “diversified” portfolio and a “stronger” distribution network.
The combined entity would have revenues of more than €320m ($376m), 65% of which would be generated internationally.
Advini noted the deal would “strengthen” its foothold in Bordeaux through the Cordier brand and enable it to enter the sparkling wine market through Café de Paris.
The company also expects its export operations to be “enhanced” through Cordier’s distribution network and presence in the Netherlands, Belgium, the US, Canada, South Africa and Japan.
Antoine Leccia, chairman of the board of directors at Advini, said: "The new entity we would create would also enable us to achieve significant commercial synergies and increase the profitability of our group.”
Structurally, the merger of capital interests is expected to take the form of an asset contribution from Cordier by InVivo to Advini.
If the deal is completed, InVivo would become a shareholder alongside the Jeanjean family and Leccia, who would retain an absolute majority of Advini’s capital.
The companies have a target to finalise the deal by 31 March.
Thierry Blandinières, the CEO of InVivo and Cordier by InVivo, said: “With its leading position in terroir wines in France, historically established in Languedoc – a wine region closely tied to InVivo through our cooperative positions – Advini, alongside InVivo, would have new assets to accelerate its growth, secure bulk wine supplies, and strengthen its position as a French wine champion in numerous countries.”
Last month, France’s ministry of agriculture announced plans to spend €130m ($150m) to support a new grubbing-up plan for the local wine sector.
As well as the latest €130m investment, the ministry said it has called on the European Commissioner for Agriculture and Food, Christophe Hansen, “to mobilise the European crisis reserve”.
The ministry has specifically called for the funds to be activated to support “the crisis distillation of non-marketable overstocks” mainly in cooperative cellars.
Cordier by InVivo, based in Bordeaux, operates as a wine wholesaler and importer.
It works with ten partner cooperatives across regions including Bordeaux, Languedoc, Roussillon, the Rhône Valley and Beaujolais, representing 29,000 hectares and 4,100 winegrowers.
The company's portfolio, which also includes Mythique and 1186 Cordier, is sold into Belgium, the Netherlands, the UK, Switzerland and the US.
Advini, founded in 1872, owns estates in most of France’s major wine regions, including Burgundy’s Domaine Laroche, Vignobles Jeanjean in Languedoc and Bordeaux’s Antoine Moueix Propriétés.
Internationally, the company is active in South Africa through its ownership of L’Avenir and Le Bonheur and majority stakes in Ken Forrester Vineyards and Stellenbosch Vineyards.
