Ranjit Chougule, MD Indage Vintners Ltd., formerly known as Champagne Indage has reportedly confirmed it and said: "The contract with Foster's EEMD (East Europe and Middle East) will generate business worth Rs 6 billion (€ 92 million) over this period and our share will be about 17% of these revenues." The contract has been signed by its UK subsidiary, Indage UK.
Due to recession in the UK market, the on-trade sales (restaurants etc.) have been badly affected but people are expected to buy more wine to be drunk in the house, resulting in higher sales of bottled and bagged wines.
Indage UK had acquired the assets of Darlington Wines last May for an undisclosed amount. It imports wines under its own label and also bottles, warehouses and distributes them.
It had also purchased Norfolk, UK based winery, Broadland Wineries but as reported in delWine already, the sale fell through last week due to shortage of funds. Similarly Indage has already purchased Thachi Wines in Australia but the Loxton deal is in a state of limbo and it has been put on a hold for an uncertain period for similar reasons.
Reportedly, the bottling will be carried out by the Darlington facility.
While the Foster's group is primarily known for its beer business, it is a major player in the wine market as well. The UK alone consumes over 110 million cases of wine a year. The intense competition in the UK wine market and the recent hike in tariff are compelling companies to cut costs.
It owns many popular Australian brands including Penfolds, Lindemans, Rosemount Estates, Wolf Blass, Wynn's Coonawarra Estate. It also produces Matua in New Zealand, Riccadonna in Italy and premium brands like Stag's Leap and Chateau St. Jean in USA. |