Krohns Sold

[Andy Velebil]

It’s official, TFP has sold Krohn’s.

You’ll have to translate.

https://www.publico.pt/2023/10/17/fugas ... es-2067014

[Eric Menchen]

Very short article. So it sounds like Quinta do Retiro Novo and the Krohn name were purchased. It doesn't say anything about the wine stocks and property in VNdG. I wonder if TFP kept the stocks.

[Glenn E.]

Of course they kept the stocks. That's all that they were after in the first place. That's why you see all of the old Krohn stocks released as Taylor Single Harvest Tawny instead of as Krohn Colheitas.

They never needed the name or the Quinta, and this sale just proves it.

[LOUISSS J]

Of course they kept the stocks. That's all that they were after in the first place. That's why you see all of the old Krohn stocks released as Taylor Single Harvest Tawny instead of as Krohn Colheitas.

They never needed the name or the Quinta, and this sale just proves it.

I don't understand... TFP sells Krohn but they keep the stock!? So they bought Krohn to have their old stock and then resell it but keep the stock?
By selling Krohn I thought they were going to sell the remaining stock. With all the stock they probably took for all their Single Harvest it's still a good move.

[Lucas S]

Sometimes you just want the stock and not the flow.

I do wonder how TFP ever got into the situation where they didn't have enough tawny in barrel in the first place.

They should have learned long ago from Dona Antonia!

[Glenn E.]

Sometimes you just want the stock and not the flow.

I do wonder how TFP ever got into the situation where they didn't have enough tawny in barrel in the first place.

They should have learned long ago from Dona Antonia!

TFP is a British house, and for decades if not centuries the British have greatly preferred Ruby Port. It is probably only since the turn of the century that the British houses have started really paying attention to Tawny Port, and even that is heavily weighted toward post-2010.

I believe that Taylor's primary source of Tawny Port has been contracted purchases. I know of at least a couple of companies who have sold to Taylor for a very long time, but as those companies start to branch out on their own to sell their own brands, Taylor has also had to branch out to find new sources.

[Andy Velebil]

TFP bought large stocks of the top tawnys from the Casa do Douro some years ago when it was going belly up.

[Frederick Blais]

It reminds me of the Delaforce deal. The stocks went one way while the brand went another way.

The final consumer has really no idea of the stocks behind the brand, and they probably don't care. Let's not forget, we are the 1%.... what the 99% sees is completely different than our reality. I would assume that Krohn can help some companies in specific markets and this is the reason they acquired it.

[Al B.]

The (Google) translated article reads:

Mello Group extends to Douro and Vinhos Verdes
The owner of the Ravasqueira brand entered the Douro and Verdes regions with the purchase of a farm and the rental of two others. With these deals, she becomes the owner of the Krohn Port wine brand.

Edgardo Pacheco and Lusa
October 17, 2023, 15:22

The José de Mello group, owner of the Alentejo brand Ravasqueira, announced this Tuesday the purchase of a farm in the Douro (Quinta do Retiro Novo) and the long-term lease of two other farms, one in the same region (Quinta do Côtto) and another in Vinhos Verdes (Quinta do Paço de Teixeiró).

Quinta do Côtto and Quinta de Paço de Teixeiró​ continue to be owned by Miguel Champalimaud's family, who have now leased them to the Mello group under a long-term contract.

Quinta do Retiro Novo was owned by the Fladgate Partnership and, as a result of its acquisition, the new holding company of the José de Mello group now owns Krohn – a prestigious brand in the world of Port wine, particularly Ports with a lot of age.

In news released this afternoon by the purchasing group, the executive president, Salvador de Mello, states that “the creation of a new WineStone business platform represents another step” in the “growth ambition”. “It is also a challenge for us to take on, the example of other business areas in which we are present, a leading position in the wine sector", he highlights.

With the launch of the WineStone holding, the José de Mello Group aims to "be at the level of the three largest operators" in Portugal by 2030. "This strategic option is taken in a dynamic framework where three essential factors converge: the growth of Ravasqueira, which was quite accentuated in the last decade, the positive evolution of the wine sector and, also, of course, the vision of the shareholder group", detailed, this Tuesday, the executive president of the new WineStone, Pedro Pereira Gonçalves, in a meeting with journalists, in a hotel in Lisbon.

The head of the Arraiolos company, which has been part of the José de Mello Group since 1943, pointed out that the wine sector is "highly fragmented" and, faced with "some consolidation", the group saw an opportunity to "also be a protagonist in this consolidation of the sector".

Objective: grow at double digits
The executive president of the José de Mello Group, Salvador de Mello, highlighted the main objectives, in addition to size, of double-digit annual average growth, exports representing more than 60% of sales and the development of new regions.

WineStone, which does not reveal the acquisition values ​​of the three farms that are now under the Mello Group, shares that the objectives set until 2030 must be achieved at the expense of organic and non-organic growth. In exports, whichever will represent 60%, the markets of the USA, Brazil, United Kingdom, Canada and Germany will be important.

Until then, the new holding company wants to increase its turnover to around 60 million euros and, to this end, admits more acquisitions. "The organic growth component is also very relevant, this is not just growth through acquisitions, although acquisitions make sense given a market that is very fragmented", pointed out Salvador de Mello.

Pedro Pereira Gonçalves highlighted that, despite the acquisitions and integrations, all production areas of these projects will be maintained. "Then, we structure it so that there is a central report, essentially, to WineStone, and we achieve a transfer of values ​​and objectives between each of the projects." The new owner will therefore maintain the teams that already work on the Douro and Vinhos Verdes farms, although he defends their reinforcement.

Asked about the effects of more aggressive climate phenomena, such as periods of drought or floods, Pedro Pereira Gonçalves pointed out that the holding 's strategic plan "quite a lot reflects" concerns about these phenomena. To this end, he explained that the diversification and complementarity of the regions will bring "balance to the execution of each of the projects".

Even so, he noted that there is a concern "more effective in the Alentejo region", but welcomed the commitment of the Government and the Ministry of Agriculture, which "try to look for solutions, every year, to resolve this issue".

News updated on 10/19/2023 and corrected: the Côtto and Paço de Teixeiró farms were not acquired, but rather leased by the Mello group under a long-term contract.