Beringer Blass Wines Estates (BBWE), the world's leading premium wine group and a major division of Foster's Group, today announced the purchase for $15.5m of the assets of Tarac Bottlers, a contract wine bottling business based in the Barossa Valley, South Australia.
BBWE's Wine Services channel is one of the world's largest providers of contract wine packaging services, via Vinpac International and Classic Packaging in Australia and Sobemab in France
With three sites, Vinpac is Australia's largest contract wine packaging provider. The addition of Tarac's business is expected to increase total Australian bottling throughput to more than 7.5 million cases annually.
The acquisition also opens up opportunities to provide Tarac customers with other Vinpac services and products such as oak barrels, corks, capsules, sparkling wine production and storage.
The acquisition will be ROCE enhancing and Earnings Per Share (EPS) positive from day one.
Plant and equipment, including two modern bottling lines, will be combined with existing plant at Vinpac's Angaston site by June 2002. Employees will be offered positions with Vinpac.
"Australia's significant wine export growth over the last three years has placed capital pressure on the wine industry, with an increasing number of wine producers at all levels choosing to outsource their packaging, warehousing and distribution requirements," said Cameron McPherson, General Manager, Wine Services for BBWE.
"The addition of Tarac's experienced personnel, strong customer base and modern assets will reinforce Vinpac's position as a one-stop premium packaging shop for quality-conscious wine producers."
Nearly 30% of Australia's bottled wine production is bottled under contract. The remaining volume is self-bottled by wine producers. There are approximately 20 contract bottling suppliers in Australia.
Australian bottled wine exports have increased by an average compound growth rate of 22% over the last three years (fiscal 1998 to 2001).
Further information:
Media
Rell Hannah
Beringer Blass
Tel: +613 8626 3307
Mob: 0419 369 075
Email: rell.hannah@beringerblass.com.au
Investor Relations
Michael Roberts
Foster's Group
Tel: +613 9633 2273
Email: michael.roberts@fostersgroup.com
