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News
Symington to take over production of Cockburn’s Port
Symington Family Estates of Portugal will take over the production of Cockburn’s Port and table wines if its current discussions with Beam Global Spirits & Wine prove fruitful.
Beam Global, the fourth largest spirits company in the world and a subsidiary of Fortune Brands, is currently exploring the possibility of Symington acquiring a number of its production facilities, including existing Cockburn’s vineyards, wineries and lodges, so that it can produce Cockburn’s Ports for Beam Global. Symington already owns Dow’s and Graham’s Port.
Should a deal be agreed, Beam Global will retain ownership and control of the Cockburn’s, Martinez and CR&F brands and will continue to manage their brand strategy, marketing, sales and distribution. The producer of Laphroaig whisky and Larios gin will also continue to reap the profits from the global sales of these brands.
Other Symington port brands include Warre’s, Smith Woodhouse, Quarles Harris, Gould Campbell, Quinta do Vesuvio and Quinta do Roriz, which is co-owned and managed alongside João van Zeller. Their combined sales represent 27% of all global premium port sales.
The deal reflects growing consolidation among port producers, who are battling to avoid the fate of producers of other fortified wines such as sherry and cognac, which have witnessed a slump in consumption since falling out of fashion with the younger generation. Jorge Monteiro, director of IVDP, comments, "The news of further consolidation within the Port wine industry is a response to the ever increasing demands and pressures facing the Port market, and is proof of the continued confidence of producers in the future of the Port wine trade worldwide. With this development, the Symington group will be the largest producer in the Douro region".
The deal, which will involve a substantial investment from Symington Family Estates, is a major step for the family-owned group. Paul Symington, joint managing director of Symington Family Estates, says, "These negotiations demonstrate my family’s total commitment to the future of premium quality Port and the Douro valley". According to Symington, the parties hope to reach an agreement by the end of June. Beam Global was unavailable for comment.
© db 1st June 2006