Foster's buys top Californian winemaker

By Phil Boeyen, ShareChat Business News Editor

Tuesday 11th September 2001

Foster's wine business, Beringer Blass, is targeting the high-end niche market with its latest acquisition.

Beringer's has bought a Napa Valley wine producer, Etude Wines, which it describes as an ultra-premium producer of pinot noir and cabernet sauvignon.

The company says Etude's revenue has almost doubled in the past two years and is expected to deliver strong revenue growth and capital returns.

Beringer executive, Walt Klenz ,says Etude is one of the most highly respected wineries in California.

"Etude's focus on ultra-premium pinot noir and cabernet sauvignon is an ideal complement to our existing portfolio of California wines.

"With an outstanding reputation among wine and food aficionados in the US, the Etude pinot noir range will give us a distinctive edge in an increasingly attractive category."

Mr Klenz says only a handful of coastal wineries focus on the luxury segment of the pinot noir market, where high prices and allocations are the rule, with competition is limited to Burgundy, California and top Oregon wines.

Etude's pinot noir ranges retails from between US$38 to US$80 per bottle.

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