Japanese drinks major Suntory Holdings is selling Chinese wine importer and distributor ASC Fine Wines back its original owners, the St. Pierre family.
Financial terms of the transaction, which is expected to be completed in the coming months, have not been disclosed.
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Husband and wife Don St. Pierre Jr. and Monica Xu St. Pierre have signed a definitive agreement to re-acquire a 100% stake in the company, ASC said in a statement.
Founded in 1996 by Don St. Pierre Jr. and his father, Don St. Pierre Sr., ASC Fine Wines has a distribution portfolio of over 1,200 wine brands from more than 100 wineries worldwide, including labels such as Cakebread Cellars, Alion and Banfi.
Its sales network covers mainland China, Macau on the southern coast of the country and Hong Kong.
In its own statement, Suntory said in light of “the challenging environment in the Chinese wine market,” it had been mulling over “various options for the future of ASC Fine Wines”, and had ultimately decided to see ownership return back to the St. Pierre family.
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By GlobalDataOsaka-based Suntory acquired ASC in 2010 after agreeing to take a majority stake from Austria’s Wine Holdings in 2009.
In its statement, ASC said with the St. Pierre family at the helm, it will “remain committed to its core strengths” while developing “into a next-generation platform” tailored to adapt to the evolving demands of the Chinese wine market.
To achieve this, ASC said it plans to leverage “cutting-edge technology, direct-to-consumer models, and best-in-class warehouse and logistics partnerships”.
Following the transaction, Don St. Pierre Jr. will become executive chairman and CEO, focusing on the group’s strategy and operations.
He said that “the evolving Chinese market presents a unique opportunity for us to innovate and provide new ways for wine producers to engage with consumers.”
Monica Xu St. Pierre will take on the position of lead director, concentrating on people, culture, and consumer experience.
“Our focus will be on strengthening the reach of our existing brands while selectively introducing new ones that complement ASC’s growth strategy and the changing needs of the market,” Don St. Pierre Jr., said.
In the months ahead, the company plans to unveil new partnerships, investments, and plans “that will further solidify its leadership position in the industry”.
