Chilean wine company Viña Undurraga has acquired VFC Wines and established the Undurraga Wine Group.
Financial details of the deal were not disclosed.
VFC Wines is a Chile-based vintner that operates 110 hectares of vineyards in the Chilean Maule Valley.
Viña Undurraga will now take control of VFC Wines’ Viña Bouchon and Viña Bisquertt brands. Viña Undurraga said the deal “strengthens” its position in global markets and that VFC Wines provides “strong sales” and distribution networks.
Just Drinks has asked the still and sparkling wines producer to clarify which geographic markets it expects will bring the most growth.
“We will focus all our efforts on building further on the excellent work in branding and distribution networks that has taken place until now,” Viña Undurraga CEO Andrés Izquierdo said.
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By GlobalData“This acquisition benefits us greatly, principally in operating synergy, which will lead to cost and expense savings, and in strengthening our brand portfolio, which will offer our clients an even more diverse range of wines with even greater quality.”
VFC Wines has production facilities with 4.5 million litres of storage capacity in the town of San Javier. The site also has two washing, bottling and labelling lines and a total production capacity of 5,000 bottles per hour.
Following the purchase, Viña Undurraga has also established the new business entity Undurraga Wine Group, which will include VFC Wines, as well as Undurraga’s other assets: Viña Undurraga, Bodega Volcanes de Chile and Talagante International Brands.
The combined annual revenue of Viña Undurraga and VFC Wines is $52m and is forecast to be $60m in 2024.
Viña Undurraga’s largest markets include the Netherlands, the US, Brazil and China. The company said its VFC Wines’ biggest markets also include Brazil and China, as well as the UK and the Czech Republic.
In terms of channels, the group said that VFC Wines’ portfolio had a “slightly” bigger sales proportion in the on-trade than Viña Undurraga.
Viña Undurraga said that the integration of the new wineries will be a “gradual process” in order to ensure a “fluent and efficient” transition for its commercial partners, customers and employees.
To aid this move, “part of the commercial and marketing teams” at Viña Bouchon, Viña Bisquertt and VFC Wines will remain in their positions to “ensure uninterrupted management”.
The group told Just Drinks that the deal would help it grow in markets including the US, China, Brazil and the Netherlands.
Viña Undurraga was founded in 1885 and operates roughly 1,700 hectares of vineyards in Chile.
The group produces still and sparkling wines, including TH Terroir Hunter, Trama, Red Field Blend and Vigno, which are exported to approximately 70 countries.
