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
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.
Image with caption: "Terrabella Wineries LTD. (CNW Group/Terrabella Wineries LTD.)". Image available at: http://photos.newswire.ca/images/download/20130213_C5113_PHOTO_EN_23671.jpg
SOURCE: Terrabella Wineries LTD.
For further information:
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