Okanagan-Based Wine Group Bullish on the Future of the Okanagan Valley
Second property acquisition aiming at growth in industry
SUMMERLAND, BC, Feb. 13, 2013 /CNW/ -
Terrabella Wineries Ltd., of Summerland, B.C., announces it has completed the purchase of an 18-acre vineyard property in West Kelowna, B.C. This marks the company's second acquisition in their process of obtaining existing wineries and building new wineries in B.C. with the intention of creating quality brands for wine consumers. The group's first purchase, made in July 2011, was Perseus Winery, located in Penticton. This second B.C. property in West Kelowna will eventually be home to the Helios Winery.
The Larger Story:
Terrabella, which means "beautiful earth", is based in Summerland, B.C. and managed by Rob Ingram and his strategic partners. Terrabella has accumulated an impressive leadership team and is poised to fulfill its business plan to maximize margins, profitability, and investor returns by owning high traffic locations for premium wine production in southern B.C. and the Okanagan Valley. This will be accomplished by acquiring existing wineries or purchasing vineyards, and constructing new wineries. By consolidating certain operating, management, marketing and sales strategies of multiple wineries, Terrabella will improve financial returns.
Bullish on the industry's future, Ingram agrees with a report issued by BMO in October 2012 (Canadian Wine Industry to Uncork Solid Growth: BMO) that the Canadian wine industry is poised for solid growth over the next five years. "The industry has seen impressive growth, and Canadians continue to embrace wine and increase their consumption," he says. "Additionally, export markets, particularly in Asia, seem ripe for B.C. wines, and there has been a recent softening of interprovincial shipping barriers allowing B.C. wineries to direct sell to consumers in select provinces."
Ingram and his partners have looked at several winery businesses over the past two years and, while optimistic, have been cautious in their approach. Ingram states: "The biggest challenge for small and medium sized B.C. wineries is obtaining sufficient financing and attaining profitability. There is a significant outlay of capital required in a winery's formative years, and success in the industry requires growth in inventory levels. This," he adds, "combined with a winery's high percentage of fixed costs, makes it difficult for many of B.C.'s existing wineries. We recognize that aggressive marketing, as well as access to financing, and broad access to sales channels are critical to a winery's success. The wine industry," he continues, "is one of the few industries that grew during the recession and is predicted to continue its growth in the years to come."
The group's first acquisition, Perseus Winery, an existing winery and vineyard located in Penticton, B.C., completed in July 2011. Named after the constellation Perseus, the winery sits among Penticton homes, with renovation plans in play to incorporate a bistro and information center. These services take advantage of Perseus's location, being the closest winery to downtown Penticton and the first on the road to wineries on the Naramata Bench. More at www.perseuswinery.com.
Terrabella's second acquisition, which completed January 31, 2013, is an established 18-acre vineyard located at 3189 Boucherie Road in West Kelowna, neighbouring some of B.C.'s best-known and most often visited wineries. Considered suitable due to its prime location for tourism and, most importantly, its healthy, sun-soaked vineyard, Terrabella plans to build a new winery on the site, to be named Helios. Derived from Greek mythology, the legend tells that each day Helios drove his chariot of sun across the sky, a perfect mimic for the sun as it moves over the vineyard.
To date, Terrabella has raised more than $6 million, and is keen to move forward with further development and additional acquisitions. The Terrabella team continues to actively investigate other opportunities for expansion alongside its concurrent capital raise. Learn more at www.terrabella.ca or contact Rob Ingram at 250-809-2315.
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