Wine merger completed

A merger in the wine world points to how interconnected the global industry has become. Foley Family Wines New Zealand recently announced that it has signed a conditional agreement to merge with The New Zealand Wine Company, to be completed once the pending conditions are met.

The Foley Family Wines company was established by Bill Foley in 1996 following the acquisition of Lincourt Vineyards in California's Santa Ynez Valley. Since then, the company has been a major producer and marketer of some of the world's greatest vineyards. The current acquisition is being undertaken in part from a supply chain management perspective, to increase supply.

"This merger is a key component to our New Zealand strategy," Bill Foley said. "The strong growth of our New Zealand wine brands, along with a couple of short vintages has left us challenged to meet our demand. With this plan we will gain much needed supply, as well as the Grove Mill, Sanctuary and Frog Haven brands to add to our robust portfolio."

The deal will give FFWNZ access to more than 494 hectares of vineyards in Marlborough.

According to Reuters, U.S. industrial executives are looking for smaller acquisitions now in order to drive growth when major economies are in a slow growth phase.