Mildara Blass, the wine division of Foster's Brewing Group, today announced its purchase of 51% of Sobemab, one of the largest contract wine bottling businesses in France, for FF79.1m (A$19.8m).
Under the agreement, Mildara Blass has the option to acquire the remainder of the business over the next four years.
The Sobemab business will be managed within Mildara Blass' Wine Services arm, which provides bottling, packaging, storage and distribution services, primarily for the wine and beverage industry.
The acquisition continues Wine Services' strategic expansion in the world's premium-focused wine-producing regions, building upon the purchase in April 2000 of Hunter Valley Wine Contractors, now known as Vinpac International (Hunter), and Carter and Associates, New Zealand's leading supplier of premium wine packaging materials.
With five plants bottling more than 11 million cases per annum, Mildara Blass' Wine Services group becomes one of the largest contract wine bottlers in the world.
The increased volume will strengthen the group's global packaging supply relationships, which should result in cost savings and expanded product offerings.
"Like our Vinpac operation in Australia, Sobemab is achieving excellent profitability and growth because its customer base is focusing more and more on premium grape varieties and higher quality packaging services," said Terry Davis, Managing Director of Mildara Blass.
"Having a base in the largest wine-producing region in the world, Languedoc-Roussillon, also opens up many strategic opportunities for us, particularly for our direct wine marketing channel. Our wine clubs operating on the European continent will benefit from lower bottling costs, a warehousing location and a network for sourcing wine in France."
The Languedoc region currently has 300,000 ha under vine and produces an estimated 150 million cases of bottled wine, compared with Australia's total 95,000 ha under vine and estimated 50 million cases of bottled wine.
Since 1988, Languedoc has seen extensive plantings of premium grape varieties and the removal of non-premium varieties, resulting in a five-fold increase in appellation quality wine production. Due to strong export growth, bottled wine volume has increased by 55% in the last two years, boosting demand for higher quality packaging services.
Sobemab's assets include:
Sobemab's dynamic and motivated management team will continue with the business for at least the next four years.
Sobemab is an acronym for Societe of Bouteillage of Beaujolais, Macon & Bourgogne.
Further information:
Rell Hannah
Director Corporate Affairs
Tel: +613 8626 3307
Mob: 0419 369 075
Email: rell.hannah@beringerblass.com.au
