Woolworths Liquor Group has acquired China-based wine and drinks distributor, Summergate Fine Wines and Spirits, for $27 million.
Summergate represents a portfolio of around 80 global brands in China, as well as a small fine wine retail business, Pudao, and a small online and direct retail operation.
Summergate was established in Shanghai in 1999 by Ian Ford and Brendan O’Toole, who will remain on board.
In Australia, Woolworths owns the BWS and Dan Murphy's liquor chains, and Woolworths CEO, Grant O’Brien said the acquisition represented a very small step into China, capitalising on our “liquor expertise.”
“We have a conservative investment lens, particularly in relation to international acquisition opportunities. Summergate is predominantly a distribution business and fits well with our supply chain and Liquor capabilities,” he said.
Woolworths Liquor Group MD, Brad Banducci, said: “Summergate is a small, complementary acquisition for our Group. As Australia’s leading drinks business, we have significant experience in distribution, retail and brand management that we will leverage in the greater China market. Likewise, we expect to learn a lot from the Summergate team that we could apply in Australia.
“Of particular interest is our ability to work with Summergate to launch the Langton’s business in China, which already has a strong profile in the region.
“We have a good working relationship with the Australian wine industry via the Langton’s Classification and hope to be able to use this to grow the reputation of Australian wine in China,” Banducci said.
