Vintage Wine Estates, Inc. (NASDAQ: VWE) (TSX: VWE.U) (TSX:
VWE.WT.U) (“VWE” or the “Company”), one of the fastest-growing wine
producers in the U.S. with an industry leading direct-to-customer
platform, today announced the acquisition of ACE Cider, The
California Cider Company, which is expected to close November 16,
2021. The first family-owned cider company in the U.S. and among
the fastest growing craft cider brands in the country, ACE produces
nearly 90,000 barrels of cider annually.
“This strategic acquisition adds an innovative product line to
our RTD (ready-to-drink) category and brings us access to a
significant new sales channel for distribution, through which we
expect we can push many of our brands,” commented Pat Roney, VWE
CEO. “ACE is an excellent complement to our wine portfolio and its
products are distributed through the beer channel which provides a
new growth opportunity for all of our RTD products.
Importantly, this provides another platform from which we can
expand by executing our strategy of consolidating highly fragmented
offerings where we can leverage our production and marketing
expertise to gain market share, capture more customers and increase
volume.”
President and Founder Jeffrey House and his family have been
producing premium, craft hard cider since 1993. ACE is located in
Sebastopol, California, near the heart of Sonoma County, a region
renowned for its winemaking and premium apple orchards.
ACE has a diverse and balanced product portfolio with
award-winning, fruit-forward ciders featuring no artificial
ingredients, less calories and significantly less sugar (no added
sugar) than the average hard cider—a compelling step up for hard
seltzer consumers. ACE Pineapple is the world’s original pineapple
cider and is the #1 selling fruit flavored cider in the U.S. ACE
hard ciders are certified gluten-free and vegan.
The transaction will add over one million cases to VWE’s annual
sales volume. ACE currently has annual revenue of over $20 million
and has achieved a double-digit compound annual growth rate over
the last five years.
Originally from England, which enjoys a longstanding and vibrant
hard cider culture, founders Jeffrey and Angela House had a vision
to bring that culture to America and build the American hard cider
industry. Mr. House established himself in the American beer and
cider industry until the founding of ACE Cider in 1993 as
California’s original hard cidery. Mr. House, sons Jason House, VP
Production & Operations and Simon House, VP Sales &
Marketing, will continue their involvement in ACE.
Financial and Legal AdvisorsCowen acted as
financial advisor to ACE and Farella Braun + Martel acted as legal
advisor.
About ACE CiderACE Cider was founded in 1993 by
Jeffrey and Angela House in Sebastopol, Sonoma County as the first
California hard cider producer, to bring the hard cider culture of
their native home, England, to the American consumer. Today, ACE is
the top independently owned hard cider brand in the U.S. with an
award-winning portfolio of fruit-forward hard ciders featuring
lower alcohol, no added sugar and a commitment to the craft and
spirit of the hard cider tradition. https://acecider.com
About Vintage Wine Estates, Inc.Vintage Wine
Estates is a family of wineries and wines whose mission is to
produce the finest quality wines and provide 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 grown to be the 15th largest wine
producer in the U.S. selling more than two 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
brand 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
www.vintagewineestates.com.
Conference Call and WebcastThe Company is
hosting a conference call and live webcast today at 4:45 PM ET/
1:45 PM PT, to review its first quarter fiscal 2022 results and the
ACE Cider acquisition. The review will be accompanied by a slide
presentation, which will be available on the Company’s website at
https://ir.vintagewineestates.com/. A question-and-answer session
will follow the formal discussion.
The conference call can be accessed by dialing 201-689-8562. The
listen-only audio webcast can be monitored
athttps://ir.vintagewineestates.com/. To listen to the archived
call, dial 412-317-6671 and enter the passcode 13724707. The
telephonic replay will be available from 7:45 PM ET / 4:45 PM PT on
the day of the call through Monday, November 22, 2022.
Alternatively, an archived webcast of the call can be found on the
Company’s website. In addition, a transcript of the call will be
posted to the website once available.
Forward-Looking StatementsSome 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 ACE
Cider 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. These forward-looking
statements are provided only to provide information currently
available to us and are not intended to serve as and must not be
relied on by any investor as, a guarantee, assurance or definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and 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, including the ACE Cider
acquisition; 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. There may be additional
risks including other adjustments that VWE does not presently know
or that VWE currently believes are immaterial that could also cause
actual results to differ from those expressed in or implied by
these forward-looking statements. 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.
Contacts:
InvestorsDeborah K. Pawlowski, Kei Advisors
LLCdpawlowski@keiadvisors.comPhone: 716.843.3908 |
MediaMary Ann
VangrinMVangrin@vintagewineestates.com |
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