Business News
HOPLAND, Calif. – Vina Concha y Toro S.A. and Brown-Forman Corp. announced Tuesday 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 $238 million.
The transaction is expected to close in April.
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 year 2010, the acquired brands represented volumes of 3.1 million cases and net sales of $156 million; Concha y Toro will also acquire assets including vineyards, cellars and a bottling plant.
Fetzer is one of the top 10 brands by volume in the U.S. market with sales of 2.2 million cases annually.
Fetzer is also a pioneer in the development of sustainable practices and recognized as an environmental leader, a commitment that has been a hallmark of the brand for the last 20 years.
Bonterra is the undisputed leader in the premium organic category and pioneered the development of vineyards in this category since 1987, with sales of 300,000 cases annually.
“The Fetzer acquisition is the largest transaction of this type in the company's history,” said Vina Concha y Toro Chief Executive Officer Eduardo Guilisasti.
He added, “It represents a continuation of our business strategy, which has been carried out successfully over time and enabled us to enjoy steady growth. We believe that this transaction opens additional growth opportunities globally, as well as in the American market, with its main brands Fetzer and Bonterra. We further intend to incorporate the culture of excellence and commitment of the great team at Fetzer who have created exceptionally strong consumer brands.”
Paul Varga, chief executive officer of Brown-Forman said, “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.”
Deutsche Bank acted as financial advisor in this transaction and Baker & McKenzie provided legal counsel to Concha y Toro.
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SACRAMENTO – On Monday the Board of Equalization (BOE) released California gasoline and diesel consumption figures for November 2010.
California gasoline consumption increased 2.6 percent in November 2010, and diesel fuel consumption increased 4.9 percent, compared with November 2009.
“California’s gasoline consumption fluctuated moderately for most of last year, which was consistent with last year's stable prices,” said Board Member Betty T. Yee. “However, price per gallon showed a continued upward price trend late last year and into the New Year. Consumption information for this period will be available in future reports.”
In November 2010, gasoline demand rose 2.6 percent when Californians used 1.20 billion gallons of gasoline compared to 1.17 billion gallons in November 2009.
The average California gasoline price at the pump in November 2010 was $3.20 per gallon compared to $3.01 in November 2009, a 6.3 percent increase.
The national average price for gasoline in November 2010 was $2.91 per gallon compared to $2.71 a year earlier.
Diesel fuel sold in California during November 2010 totaled 207 million gallons compared to November 2009’s total of 198 million gallons, which is an increase of 4.9 percent.
California diesel prices were $3.30 per gallon in November 2010 an increase of 11.5 percent compared to November 2009 when the average diesel price was $2.96 per gallon.
The national average price for diesel fuel in November 2010 was $3.14 per gallon compared to $2.80 a year earlier.
The BOE is able to monitor gallons through tax receipts paid by fuel distributors.
The figures reported monthly are net consumption that includes BOE audit assessments, refunds, amended and late tax returns, and State Controller’s Office refunds.
Figures for December 2010 are scheduled to be available at the end of March 2011.
All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.
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