Beringer Blass Wines Estates (BBWE), the world's leading premium wine company and a major division of Foster's Group, today announced an equity partnership with Francois Freres, the world's second largest wine barrel cooperage business, relating to the purchase of Australia's leading cooperage.
Under the arrangement, BBWE will purchase 51% of A P John Pty Ltd (A P John) for $8.3m. Francois Freres will acquire the remaining 49% of A P John and contract to supply it with French oak, the most highly prized material used for premium wine maturation. A P John will continue to source American oak from its existing suppliers.
Established in South Australia's Barossa Valley in 1889, A P John makes approximately 20,000 oak barrels per annum, accounting for 45% of Australian-made production. Peter John, the fourth generation of Johns to own and run the business, will remain as General Manager.
Consistent with BBWE's Wine Services strategy to be the leading supplier of packaging, warehousing and distribution services to the global wine industry, the joint venture will more than double BBWE's Australasian oak barrel sales (from 17,000 to 37,000 annually) and provide significant potential to increase its oak barrel production in both Australia and the USA.
Francois Freres currently supplies French-made oak barrels to Vinpac International, which on-sells to premium wine producers in Australia and New Zealand. A P John will provide Vinpac with a highly regarded source of Australian-made barrels and increase its share of the total oak barrel market to over 30% in Australia and 40% in New Zealand.
"The combination of AP John's heritage and expertise, Francois Freres' access to top quality oak and Vinpac's sales infrastructure will increase our edge as a premium wine services supplier," said Cameron McPherson, General Manager Wine Services for BBWE. "Peter John is very well regarded in the industry and his strong ongoing management will be a great asset to our future growth."
The partnership with Francois Freres will also benefit BBWE's U.S. and Australian wine trade businesses, by improving their access, at controlled cost, to quality French oak, which is in high demand worldwide. In the USA, BBWE has a new state-of-the-art barrel cooperage, which is expected to produce 17,000 barrels in fiscal 2001 and 28,000 barrels per year by fiscal 2004. The barrels are hand-crafted from French, American and Hungarian oak.
Further information:
Media
Rell Hannah
Director Corporate Affairs
Tel: +613 8626 3307
Mob: 0419 369 075
Email: rell.hannah@beringerblass.com.au
Domenic Panaccio
V-P Capital Markets
Tel: +613 9633 2641
Email: domenic.panaccio@fostersgroup.com
