Midwest custom production facility increases
supply chain efficiencies and provides platform for further
growth
Vintage Wine Estates, Inc. (NASDAQ: VWE) (TSX: VWE.U) (TSX:
VWE.WT.U) (“VWE” or the “Company”), a top 15 U.S. wine company and
one of the fastest-growing wine producers in the U.S., announced
today the acquisition of Meier’s Wine Cellars, Inc., DBA Meier’s
Beverage Group, (“Meier’s”) located in Silverton, Ohio which is
north of Cincinnati. The purchase was valued at approximately eight
times Meier’s 2021 adjusted EBITDA.
With approximately $18 million in revenue in 2021, Meier’s is a
leading producer, bottler, importer and marketer of specialty
beverage alcohol and non-alcohol products and is one of the oldest
and most versatile custom beverage production facilities in the
Midwest. A leading service provider of custom blending, contract
storage, contract manufacturing, and private labeling for wine,
beer, and spirits, Meier’s owns a bonded winery, brewery, and
distilled spirits plant with processing, blending, and bottling
capabilities for a broad variety of beverage alcohol and
non-alcoholic products. These operations include three bottling
lines and a state-of-the-art beverage canning line that produces
over 800,000 cases annually.
“Vintage Wine Estates has a longstanding relationship with
Meier’s and has been a spirits client for many years. We know their
operation to be among the most well-managed in the business,”
commented Pat Roney, CEO of Vintage Wine Estates. “We are
particularly excited about their expertise in ready-to-drink
(“RTD”) wine and beverage alcohol production and plan to expand our
RTD production, including Ace Cider products, at their
facility.”
Along with enhanced production capabilities and supply chain
efficiencies, Meier’s offers significant additional warehouse and
storage space. The central Midwest location provides more efficient
access to Midwest, Northeast, and Southeast markets, allowing for
rapid expansion of points of distribution for products such as ACE
Cider which was acquired by VWE in November 2021.
Typical with VWE acquisitions, the Company plans to benefit from
additional future synergies gained through consolidation, operating
leverage, and growth.
Meier’s President, Paul Lux will continue to bring his
longstanding expertise to the operation. Commenting on joining the
VWE team, Mr. Lux stated, “We are excited to partner with Vintage
Wine Estates which has been successfully growing its beverage
alcohol business over the last 20 years. We were attracted to the
opportunity to join VWE because we expect the combination to
accelerate cash flow growth from stronger operating leverage while
also expanding our capabilities and market reach. Meier’s brings
technical strength, increased capacity, and deeper Mid-West
geographic access to the broader brand equity and scale of Vintage
Wine Estates. We look forward to our shared success and the
expected solid growth that this merger creates.”
About Vintage Wine Estates:
Vintage Wine Estates is a family of wineries and wines whose
singular focus is producing the finest quality wines and incredible
customer experiences with wineries throughout Napa, Sonoma,
California’s Central Coast, Oregon, and Washington State. Since its
founding 20 years ago, the Company has become a top 15 U.S. wine
producer via organic and acquisitive growth, today selling nearly 2
million nine-liter equivalent cases annually. To consistently drive
growth, the Company curates, creates, stewards, and markets its
many brands and services to customers and end consumers via a
balanced omni-channel strategy encompassing direct-to-consumer,
wholesale, and exclusive brands arrangements with national
retailers. While VWE is diverse across price points and varietals
with over 50 brands ranging from $10 to $150 at retail, its primary
focus is on the fastest growing premium segment of the wine
industry with the majority of brands selling in the $10 to $20
price range. The Company regularly posts updates and additional
information at https://www.vintagewineestates.com.
About Meier’s Beverage Group:
Meier’s Beverage Group is a growing manufacturer of bulk and
packaged wine, beer, spirits, and consumer beverages. Meier’s has
operated in this space for over 100 years and focuses on the
broadening of its portfolio of wines and juices as well as aiding
in the growth of start-up and craft companies operating in similar
industries. Meier’s services customers throughout the U.S. as well
as in Asia, Europe, and South America and produces more than
800,000 cases annually. It is the oldest and largest winery in Ohio
and is dedicated to expanding the breadth and depth of its
portfolio, the success of its downstream clients, and the personal
and professional growth of its team members. For more information,
visit https://www.drinkmeiers.com.
Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of applicable
securities laws (collectively, “forward-looking statements”).
Forward-looking statements are all statements other than those of
historical fact, and generally may be identified by the use of
words such as “anticipate,” “believe,” “continue,” “estimate,”
“expect,” “future,” “intend,” “may,” “model,” “outlook,” “plan,”
“pro forma,” “project,” “seek,” “should,” “will,” “would” or other
similar expressions that indicate future events or trends. These
forward-looking statements include, but are not limited to the
expected financial, operational, and other benefits from the
Meier’s Wine Cellars acquisition. These statements are based on
various assumptions, whether or not identified in this press
release, and on the current expectations of VWE’s management and
are not guarantees of actual performance. Actual events and
circumstances may differ materially from those contained in or
implied by such forward-looking statements. These forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond the control of VWE. Factors that could cause
actual results to differ materially from the results expressed or
implied by such forward-looking statements include, among others:
the Company’s ability to remediate its material weakness in
internal control over financial reporting and to maintain effective
internal control over financial reporting, the effect of economic
conditions on the industries and markets in which VWE operates,
including financial market conditions, fluctuations in prices,
interest rates and market demand; risks relating to the uncertainty
of the projected financial information; the effects of competition
on VWE’s future business; risks related to the organic and
inorganic growth of VWE’s business and the timing of expected
business milestones; the potential adverse effects of the ongoing
COVID-19 pandemic on VWE’s business and the U.S. economy; declines
or unanticipated changes in consumer demand for VWE’s products; the
impact of environmental catastrophe, natural disasters, disease,
pests, weather conditions and inadequate water supply on VWE’s
business; VWE’s significant reliance on its distribution channels;
potential reputational harm to VWE’s brands from internal and
external sources; possible decreases in VWE’s wine quality ratings;
integration risks associated with recent acquisitions; changes in
applicable laws and regulations and the significant expense to VWE
of operating in a highly regulated industry; VWE’s ability to make
payments on its indebtedness; and those factors discussed in
documents of VWE filed, or to be filed, with the U.S. Securities
and Exchange Commission (“SEC”) or Canadian securities regulatory
authorities. In addition, forward-looking statements reflect VWE’s
expectations, plans or forecasts of future events and views as of
the date and time of this press release. VWE undertakes no
obligation to update or revise any forward-looking statements
contained herein, except as may be required by law. Accordingly,
undue reliance should not be placed upon these forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220118006220/en/
Investors Deborah K. Pawlowski, Kei Advisors LLC
dpawlowski@keiadvisors.com Phone: 716.843.3908
Media Mary Ann Vangrin
MVangrin@vintagewineestates.com
Vintage Wine Estates (TSX:VWE.U)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Vintage Wine Estates (TSX:VWE.U)
Historical Stock Chart
Von Apr 2023 bis Apr 2024