Thursday, July 3 2008
Winexpert, Vineco and . . . World Vintner's
Now there's some cognitive dissonance--who'd have ever
thought I'd paste that picture up on my blog?
From the 'it's a funny old world' department, Andrew Peller announced that has purchased World Vintner's. From the press release:
Andrew Peller Limited (the "Company") (TSX:ADW.A) and (TSX:ADW.B) announced today that it had acquired 100% of the common shares of World Vintners Inc. ("WVI"), a producer and seller of high quality consumer-made wine kits. WVI's sales for its most recently-completed financial year ended July 31, 2007 were approximately $12.0 million. The purchase price was approximately $9.0 million.
The acquisition brings to the Company a dedicated network of 75 franchised wine-on-premise and retail outlets under the Wine Kitz brand name. The Company remains committed to WVI's franchisees and will invest in the network to enhance its marketing, service, and support. Franchisees will benefit from the Company's market leadership, financial strength and reputation for quality and service. WVI also produces the popular Heron Bay brand sold through independent wine-on-premise and retail outlets across Canada.
"This acquisition significantly strengthens our consumer-made wine business, and enhances our presence in a number of markets," commented John Peller, President and CEO.
"The addition of World Vintners complements our Vinceco and Winexpert businesses and strengthens our position as Canada's largest producer and supplier of consumer-made wines. We expect this acquisition will generate enhanced business opportunities as well as economies of scale and synergies to increase our profitability," added Rob Van Wely, President of the Company's consumer-made wine business.
Welcome to the family. Did you bring a corkscrew?
What precisely does this mean for you, the wine kit consumer? Well, not a lot, actually. Business will be as usual: Wine Kitz stores will sell Wine Kitz, uh, kits, Winexpert will sell it's kits and so on--these twains ain't meeting. The World Vintners business unit will be producing, marketing and selling their products, using their own staff and resources as usual. Thank goodness, because there's sure no spare time in my schedule. Luckily they're all pretty darn good at what they do, and are a very strong brand on their own.
The really good news out of this is that a big investment (nine million bucks!) really does signal that the bean counters and execs at Andrew Peller (my bosses, and thanks for the bean, fellows!) are bullish on the kit business, and are planning for the very long-term market, which is pretty warm and fuzzy from my chair.
It's a strange old world. I was working for Spagnol's when it was acquired by Vincor (now part of Constellation Brands--doesn't anyone ever stop with these mergers?) in the 90's and went through the interesting and exciting changes of those times. From the original wine kits of Stan Anderson's Wine Art back in the late 50's, consisting of a can of concentrate and some packets of acid, tannin and nutrient to mix in yourself, to multiple business units producing superb quality wines for distribution all over the world, we've come a long way.
And the day ain't over just yet.
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