Vincor Expands (November 19, 2002)
Canada's largest winery, Vincor International, just got bigger. The company
has acquired Goundrey Wines in Western Australia for $53.7 million. Goundrey
sells upwards of 250,000 cases in the premium and super-premium categories.
The purchase of Goundrey is part of an aggressive strategy by Vincor's
President and CEO, Donald Triggs, to create a billion-dollar company within
five years (they're closing in on the $500 million mark now). Vincor already
owns R.H. Phillips in California and Hogue Cellars in Washington State.
"This acquisition," says Triggs, "is an important milestone
in our international strategy to expand operations to all New World wine
regions. Australian wine is the fastest growing segment of the international
wine market and Western Australian wineries, Goundrey in particular, continue
to demonstrate the ability to produce and market large quantities of premium
and super premium branded wines."
Last year, Canadians purchased 2 million cases of Australian wines,
and to date the increase for 2002 has been 24 per cent. In the U.S. the
growth has been 35 per cent. At Vincor's AGM, Donald Triggs outlined his
projection for the sale of Goundrey wines in North America and other markets:
"Based on the strong continued growth that is available for Goundrey
in export markets, our goal is to double Goundrey's revenues within five
years. We intend to accomplish this goal by developing a strong export
business of over a hundred thousand cases annually and by migrating Goundrey's
overall portfolio to the high end of the super premium segment."
Given Canadians' love affair with Australian wines, this may well be
Vincor's holdings in Canada include Inniskillin Wines in Ontario and
Sumac Ridge and Hawthorne Mountain in British Columbia. Analysts are wondering
where Vincor might be shopping next. Chile? New Zealand? South Africa?