French agricultural cooperative group, InVivo has acquired 78% of Cordier Mestrezat, one of the top three Bordeaux négociants for €40 million (US$45.1 million). A négociant is a wine merchant that purchases grapes, grape must, or bulk wine from smaller vineyards, producing wine to be sold under its own label.
Although it has some past experience managing vineyards, this is the first venture into wine for InVivo, which has a revenue of €5.7 billion across 28 countries specializing in agriculture, animal nutrition, and agri-food distribution.
Cordier Mestrezat is one of the oldest négociants in Bordeaux, with Mestrezat originally dating back to 1815. In 2010 it has €50 million in turnover, with 50% attributed to grand crus, 25% to petit chateaux, and 25% to Cordier branded wines. Of this total production, 70% was exported.
InVivo plans to use its resources and marketing power to develop the Cordier brand into a major presence on the wine market, increasing competition against the French wine groups, Castel and Grand Chais de France. The group also aims to expand beyond Bordeaux and increase its turnover to reach a goal of €500 million.
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