Merger creates largest quality wine group in France

Two of France’s biggest wine producers, Jeanjean and Laroche, have merged to form a new group, Advini.

The new company claims to now be the number one quality wine-producing group in France and the third-largest still wine producer in the country.

Michel Laroche, chairman of Laroche, said: “The merger with the Jeanjean group is exactly what I have been looking for and offers us fabulous growth and development perspectives.

“The pooling of our skills and the resulting synergies will provide us with the means to push forward with the development of premium brands both in France and abroad, while significantly improving the profitability of both groups.”

Advini has an annual turnover of €190 million and an impressive portfolio of brands. It also owns 1,450 hectares of vines across the south of France and Chablis and also has vineyards in the New World.

Under the terms of the merger the Jeanjean family hold a 49% share of the Advini capital, and the Laroche family 11%. Private shareholders and business leaders make up the balance of the core shareholders.

Any remaining shares are held by a number of small shareholders within the framework of the company’s floatation on the Euronext stock exchange, in Paris.

Antoine Leccia, previously chairman of Jeanjean, has become Advini’s chairman of the board of directors. The board also includes: Michel Laroche, Brigitte Jeanjean, Frédéric Jeanjean and Raymond Plantarde. Bernard Jeanjean will preside over the supervisory board.

57% of the new group’s turnover is made in France – 39% in multiple grocers and 18% in the on-trade and through independent retailers.

The remaining sales are made in export markets, of which 14.7% in Northern Europe, 15.9% North America, 52.4% in Western Europe and 17% in others.

Advini holds several French and overseas vineyards including: le Clos de l’Oratoire in Châteauneuf-du-Pape, Gassier in Provence, Antoine Moueix in Saint-Emilion, Jeanjean in the Languedoc and Laroche in Chablis, Chile, South Africa and the Languedoc.

The headquarters of the new group is based in Saint-Felix de Lodez, formerly the headquarters of Jeanjean near Montpellier.

Click here for the drinks business’ original coverage of the story.

Rupert Millar, 04.02.2010