Vintage Wine Estates Expands Production Capacity and Capacity with Acquisition of Meier’s Beverage Group
SANTA ROSA, Calif.–(BUSINESS WIRE)–Vintage Wine Estates, Inc. (NASDAQ: VWE) (TSX: VWE.U) (TSX: VWE.WT.U) (“VWE” or the “Company”), one of the 15 largest wine companies in the United States and one of the fastest growing company in the United States, today announced the acquisition of Meier Wine Cellars, Inc., DBA Meier’s Beverage Group (“Meier’s”) located in Silverton, Ohio, north of Cincinnati. The purchase was valued at approximately eight times Meier’s adjusted EBITDA in 2021.
With sales of approximately $18 million in 2021, Meier’s is a leading producer, bottler, importer and distributor of alcoholic beverages and specialty non-alcoholic products and is one of the production facilities of oldest and most versatile personalized drinks in the Midwest. A leading provider of custom blending, contract storage, contract manufacturing and private labeling services for wine, beer and spirits, Meier’s owns a winery, brewery and distilled spirits factory bond with processing, blending and bottling capabilities for a wide variety of alcoholic beverages and non-alcoholic products. These operations include three bottling lines and a state-of-the-art beverage canning line that produces over 800,000 cases per year.
“Vintage Wine Estates has a long-standing relationship with Meier’s and has been a spirits customer for many years. We know their operation is among the best managed in the industry,” commented Pat Roney, CEO of Vintage Wine Estates. “We are particularly excited about their expertise in the production of ready-to-drink (“RTD”) wines and spirits and plan to expand our RTD production, including Ace Cider products, at their facilities.
In addition to improved production capabilities and supply chain efficiencies, Meier’s provides significant additional warehousing and storage space. Central Midwest location provides more efficient access to Midwest, Northeast and Southeast markets, enabling rapid expansion of distribution points for products such as ACE Cider which was acquired by VWE in November 2021 .
Typically with VWE acquisitions, the Company expects to benefit from additional future synergies gained through consolidation, operating leverage and growth.
Meier Chairman Paul Lux will continue to bring his longstanding expertise to the operation. Commenting on joining the VWE team, Mr Lux said:We are delighted to partner with Vintage Wine Estates, which has successfully grown its liquor business over the past 20 years. We were attracted to the opportunity to join VWE as we expect the combination to accelerate cash flow growth through stronger operating leverage while expanding our capabilities and market reach. Meier’s brings technical strength, increased capacity and deeper geographic access from the Midwest to Vintage Wine Estates’ broader brand equity and scale. We look forward to our joint success and the expected solid growth this merger will create. »
About Vintage Wine Estates:
Vintage Wine Estates is a family of wineries and wineries with a single goal to produce the highest quality wines and incredible customer experiences with wineries in Napa, Sonoma, the Central Coast of California, Oregon and Washington State. Since its inception 20 years ago, the company has become one of the top 15 US wine producers through organic and acquisitive growth, today selling nearly 2 million nine-liter equivalent cases annually. To continually drive growth, the company curates, creates, manages and markets its many brands and services to customers and end consumers through a balanced omnichannel strategy encompassing direct-to-consumer, wholesale and exclusive branding agreements with retailers. national retailers. While VWE is diverse in price and varietal with more than 50 brands ranging from $10 to $150 at retail, its primary focus is the fastest growing premium segment of the wine industry, the majority brands selling in the price range of $10 to $20. The Company regularly publishes updates and additional information on https://www.vintagewineestates.com.
About Meier Beverage Group:
Meier’s Beverage Group is a growing manufacturer of bulk and packaged wine, beer, spirits and consumer beverages. Meier’s has operated in this space for over 100 years and is focused on expanding its wine and juice portfolio as well as helping the growth of start-ups and craft businesses operating in similar sectors. Meier’s serves customers throughout the United States as well as Asia, Europe and South America and produces more than 800,000 cases per year. It is Ohio’s oldest and largest winery and is dedicated to the breadth and depth of its portfolio, the success of its downline customers, and the personal and professional growth of its team members. . For more information, visit https://www.drinkmeiers.com.
Certain 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 statements of historical fact and can generally be identified by the use of words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, ” future”, “intend”, “may”, “model”, “outlook”, “plan”, “pro forma”, “project”, “research”, “should”, “will”, “would ” or other similar expressions that indicate future events or trends. These forward-looking statements include, but are not limited to, the financial, operational and other benefits expected from the acquisition of Meier’s Wine Cellars. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of VWE management and are not guarantees of actual performance. Actual events and circumstances may differ materially from those contained or implied by these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond VWE’s control. 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 cure 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, price fluctuations, interest rates and demand of the market ; risks related to the uncertainty of forecast financial information; the effects of competition on VWE’s future business; risks relating to the organic and inorganic growth of VWE’s business and the timing of expected commercial milestones; the potential adverse effects of the ongoing COVID-19 pandemic on VWE’s business and the U.S. economy; unexpected declines or changes in consumer demand for VWE’s products; the impact of environmental disasters, natural disasters, disease, pests, weather conditions and inadequate water supply on VWE’s business; VWE’s significant dependence on its distribution channels; potential damage to the reputation of VWE’s brands from internal and external sources; possible declines in the quality ratings of VWE wines; integration risks associated with recent acquisitions; changes in applicable laws and regulations and significant expense for VWE to operate in a highly regulated industry; VWE’s ability to make payments on its debt; and factors discussed in VWE’s documents filed or to be filed with the United States Securities and Exchange Commission (“SEC”) or Canadian securities regulators. In addition, forward-looking statements reflect VWE’s expectations, plans or forecasts regarding future events and beliefs 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 required by law. Accordingly, undue reliance should not be placed on these forward-looking statements.