The Treasury expands its luxury wine portfolio in the United States

Treasury Wine Estates continued its strategy of adding value to its American wine activities with the $433 million purchase of Frank Family Vineyards.

Winemaker Penfolds bought the Napa Valley, Calif., business with an EBITDAS multiple of 13.2, which TWE said was favorable compared to the company’s current wine deals. luxury.

FFV’s portfolio would complement that of Treasury Americas and fill a gap for luxury chardonnays, which also have a national distribution network.

The company sells at prices between $38 and $225 a bottle, leading chardonnay but also cabernet sauvignon, pinot noir and sparkling wine.

The Treasury has been an avenue of divestment from low-margin commercial brands in the United States since China imposed draconian trade sanctions on Australian products, while expanding high-margin luxury businesses.

The process is largely complete, with the company raking in $300 million from the sale.

Treasury CEO Tim Form said the Frank Family brand is another step in the company’s ambition to become the market leader for premium wines in the Americas.

Ford said, “This is a rare opportunity to acquire a luxury brand and portfolio of wines that consumers love and connect with.

“Together with them, we are excited about the future potential that will be unlocked by the strengths of Treasury Americas’ luxury wine platforms.”

Image: Frank Family Vineyards

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Jean H. Vannatta