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Posted 7th April 2021

Stansfeld Scott to Acquire New Brands with The Wine Group Premiumisation Plan

Tags: beringer

From the Syndey Morning Herald: "We are delighted to be entering into this long-term transaction with The Wine Group, which will be of mutual long-term benefit to our respective organisations," chief executive officer for Treasury Wine Estates Tim Ford said. "For Treasury Wine Estates, this transaction is a significant milestone towards our plans to deliver the future state premium US wine business and we can now focus solely on continuing the growth of our premium brand portfolio to drive future performance in the Americas."

Under the terms of the agreement, The Wine Group will acquire all of Treasury's existing inventories of the licensed brands on a progressive drawdown basis and will also assume all responsibility for future bulk supply contracts. The brands sold to TWG contributed to $92 million of Treasury's sales in the six months to the end of December and $13.5 million in gross profit.

The Wine Group owns and produces over 100 brands across Australia and the US, including Franzia, Cupcake and Foxhorn. Chief executive Cate Hardy said the acquisition of Treasury's brands would boost the company's lower-end wine portfolio."Adding these brands complements TWG's leadership in the value segment alongside our growing portfolio of premium wines, introducing more consumers to our high-quality wines at every price point."

As part of the licence agreement, Stansfeld Scott will now be handling Beringer Main & Vine, Beringer Founders, Coastal Estates and Meridian.