BRL Hardy has chosen what some consider to be a dubious means of expanding its market share in the US by consummating a US$100 million joint venture with the second largest wine supplier in the US, Constellation Brands Inc. Managing director Stephen Millar says the new Pacific Wine Partners will grow strongly through acquisitions of up to US$500 million and expects to lift current distribution levels from 700,000 cases to five million in 5-10 years. Constellation would contribute about US$80 million in assets through a 20,000 tonne winery, bottling facility and vineyard in Monterey, California, along with its Farallon brand. On the other side of the ledger, BRL will pay Constellation about US$40 million in cash and contribute U.S. distribution rights for its Banrock Station, Hardys and other brands. ‘We would be disappointed if we weren’t successful in making an acquisition through the joint venture in the next 12 months’, said Millar.
