Vina Concha y Toro Acquires Brown-Forman Brand

Vina Concha y Toro S.A. and Brown-Forman Corporation announce the acquisition by Vina Concha y Toro of Fetzer Vineyards and related assets from Brown-Forman in California. The purchase price for the transaction is US$238 million. The transaction is expected to close in April 2011.

 

The acquisition includes a portfolio of brands with attractive positioning in the American wine market: Fetzer, Bonterra, Five Rivers, Jekel, Sanctuary and Little Black Dress. For fiscal 2010, the acquired brands represented volumes of 3.1 million cases and net sales of US$156 million; Concha y Toro will also acquire assets including vineyards, cellars and a bottling plant.

 

Paul Varga, chief executive officer of Brown-Forman, says, "Fetzer and Bonterra have been wonderful brands for Brown-Forman over the years, but as our company has grown globally and our portfolio strategy has evolved, we believe refocusing our resources on what we deem to be our best opportunities for strong growth will provide superior shareholder returns over the long term. And we are particularly pleased that such a prestigious wine company as Vina Concha y Toro will continue the legacy of success these brands have enjoyed over the last several decades."