30 June 2020
The Overseas Investment Office has granted consent to E & J Gallo Winery (Gallo Winery) to acquire the Nobilo wine brand from a subsidiary of Constellation Brands Inc (Constellation).
Based in California, E & J Gallo Gallo Winery is the largest family-owned winery in the world - it owns more than 100 brands and exports wine globally.
This is consent for an overseas investment in significant business assets as the value of the assets being acquired exceeds $100 million - no sensitive land is involved. The investment is part of a wider transaction in the United States between Gallo Winery’s group of companies and Constellation's group of companies.
Gallo Winery was established in 1933 and the products it owns are available in more than 110 countries globally. Gallo Winery imports wine from Argentina, France, Italy, Spain and New Zealand for distribution in the United States. The company is already well experienced in working with established wine brands in New Zealand, including with Marlborough’s Whitehaven wine. It also has the exclusive distribution rights for the Saint Clair and Whitehaven brands in the United States, and made an original equity investment in Whitehaven in return for a 25.2% shareholding interest. Gallo Winery has subsequently diluted its shareholding in Whitehaven to 24.99%.
The directors of Gallo Winery have numerous years of business experience, including in the manufacturing and production of wine as either directors and/or senior executives of large companies with global operations. They plan to apply this experience and knowledge to the Nobilo brand to help it grow internationally with a focus on the United States market.
The acquisition also includes intellectual property associated with the Nobilo brand for worldwide use, all finished inventory (including bulk and bottled wine) and the rights under certain grape supply agreements.
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