Beringer Blass Wines Estates (Beringer Blass), a global leader in premium wine and a major division of Foster's Group, today announced that its New Zealand operations have entered into an agreement to acquire the assets and operations of Ponder Estate Wines Limited, a boutique premium wine estate in the Marlborough region of New Zealand. The acquisition is subject to New Zealand Overseas Investment Commission approval.
At the purchase price of $NZ11.1m (A$9.3m), the acquisition will be earnings-per-share (EPS) positive in the first year.
"World demand for New Zealand Sauvignon Blanc is growing rapidly. Our new Ponder Estate holdings will help secure the fruit supply we need to realise the global sales potential of our Matua Valley brand," said Jamie Odell, Managing Director Trade Asia Pacific for Beringer Blass.
Ponder Estate currently has 23 hectares under vine, producing Sauvignon Blanc, Chardonnay, Riesling, Pinot Noir and Merlot. Beringer Blass will plant Sauvignon Blanc on an additional 9 hectares of the property.
In fiscal 2002, Beringer Blass's New Zealand winery, Matua Valley Wines, will sell around 170,000 cases of wine globally, with growth driven primarily by increased sales in the UK.
The Ponder Estate purchase will provide Matua with an additional 28,000 cases of wine from the 2002 vintage, enabling it to significantly increase sales in the USA and UK, where there is strong demand for New Zealand wines, particularly Sauvignon Blanc from the Marlborough region.
By 2007, following additional plantings, fruit supply from the Ponder vineyards and assigned contracts are expected to increase to the equivalent of 44,000 cases.
The Ponder purchase will also provide Matua with a high-profile cellar door presence in Marlborough. Selling wine, olive products and paintings, Ponder Estate is one of Marlborough's most visited cellar door operations, attracting around 10,000 visitors annually.
"Loyal collectors of the distinctive Ponder Estate label will be delighted that Mike Ponder has agreed to continue to provide paintings for the series," said Jamie Odell.
Mike Ponder is a well-known painter, author and pioneer of New Zealand's high-end olive oil industry.
The Ponder Estate brand will continue as a boutique line, with sales primarily directed through the cellar door and Beringer Blass's local wine club business, Cardmember Wines.
Further information:
Media
Rell Hannah
Tel: +613 8626 3007
Mob: 0419 369 075
Email: rell.hannah@beringerblass.com.au
Analysts
Domenic Pannacio
Vice President Capital Markets
Tel: +613 9633 2641
