Wine Insights and Cumulus Wines merge
By Andy Young
Leading total wine services provider Wine Insights and Orange-based winery Cumulus Wines has confirmed a "scrip-for-scrip merger" of the two businesses.
The deal, which sees shares offered in place of cash, brings together a stable of recognised brands including Rolling and Climbing from Orange and Central Ranges, Moss Bros from Margaret River, The Riddoch Run from Coonawarra and multi-regional brands, Beelgara Estate and The Habitat.
Wine Insights’ Peter Toohey said: "We are very excited to continue the evolution of our business through this merged entity.
"In a rapidly changing industry, companies must ensure they are profitable, relevant, efficient, and produce high quality wines. Most importantly, operations must be aligned to changing market conditions and consumer preferences. We believe the merger improves our ability to do so."
Wine Insights confirmed that there will be no changes to existing the sales and distribution set-up or to market or channel partnerships. The company also said that each brand "will continue to be managed autonomously".
Wine Insights chief executive officer Allison Payne said: "We’d really like to thank the staff from both companies for their commitment and passion for the two businesses over the years. We will be working very hard to ensure that the transition is as seamless as possible for our people and our customers."
The merged entity has combined gross revenue in excess of $20 million, producing and marketing over 400,000 cases of wines across 27 markets and Cumulus Wines’ Peter Wedgwood, added: "the new entity is well placed to capitalise on changing market and sector conditions and emerging market opportunities. The merger enables us to navigate the future with operational and financial stability."
Toohey also said that there would be more coming from Wine Insights as the company has "already got another two acquisitions on the slab."
Although he was unable to expand on the details of those acquisitions details will be published on TheShout when they are confirmed.
Do you have a story or a tip for The Shout? Email the editor.