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I read a reliable wine press article reporting that Freixenet have bought Bolney wine estate for an undisclosed sum. Does anyone have any inside track on the price? I am not sure I would buy an English wine estate. I am not convinced of the wisdom of the move.
Possibly there is a second motivation beyond simply buying the winery, and thatâs having a presence (a registered office) in the UK after brexit?
They have an office and registered company in the UK already (FREIXENET UK LTD), so I would guess not.
For a company of their size to buy into English sparkling suggests they see a profitable future. Even if it is just a marketing play of some form?
I wonder what it means for Bolney regards expansion / quality!
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Fir enough. In which case, they must see a future for English Sparkling Wine, whatever that may be.
I guess the price probably wasnât âmaterialâ for a company of their size. Could just be a punt to see how it goes!
My hunch - and I hate to sound the cynic, but experience screams at me, and being honest with ourselves Freixenet are more a âvolumeâ business- is that they can ride the back of the âqualityâ perception of ESW, particularly as the top-end grows, but probably mostly produce something akin to that which @PHarvey had. Essentially, Bolney being the loss leader.
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âIrons in firesâ comes to mind here.
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Does Bolney have a higher âqualityâ perception than Champagne? They own two Champagne houses, one of which - Alfred Gratien - is stocked by TWS and who supply the own label TWS ChampagneâŚ
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Iâm not suggesting it as an alternative to Champagne, in fact I donât even think I even mentioned Champagne (did I?) but itâs quite clear that ESW is gaining a reputation globally - I make no comment on whether that reputation is deserved or not - as a wine to buy for serious connoisseurs.
If, as happens so many times with so many businesses, Freixenet were to pump money into a small part to create a premium (or super-premium) product, and then made a low-rent, lower quality, mass market âproducers of that amazing wine you canât affordâ, it wouldnât surprise me. Thatâs all. It isnât a particularly new or sophisticated tactic, but it goes on in most sectors of our economy.
No you didnât mention Champagne. But you suggested the company bought Bolney so âthey can ride the back of the âqualityâ perception of ESW.â
They can already âride the back of the âqualityâ perceptionâ of Champagne which Iâd suggest has a much higher quality perception than ESW.
In other words, I donât think thatâs their reason for buying Bolney.
I am happy to agree to disagree on this as neither of us know the real reason they bought Bolney.
Iâd guess ESW was a sparkling wine they didnât have in their portfolio and it was cheaper to buy a long established brand with a good reputation than to buy land, plant grapes and start from scratch. If it doesnât work out for them, then theyâll sell it.
I wonder if the next TWS own label ESW will be made by Bolney?
I donât really see how weâre disagreeing, this is essentially the kernel of what Iâm driving at. ESW is on the up. They want in. Theyâll probably also want to make money.
Sparkling Giant Buys English Winery | Wine-Searcher News & Features
Not much more info but âBolney Wine Estate currently produces between 250,000 and 300,000 bottles each year, [âŚ] but has a current capacity to make 600,000 bottles of wine a year,â
Dr Andreas Brokemper, CEO of Henkell-Freixenet said: "We are delighted to add English sparkling wine, a still young, prestigious sparkling wine speciality to our âpearls of Europeâ.
âWe are convinced that as the global market leader in the sparkling wine market, we can further strengthen the image of English sparkling nationally and internationally.â
And they state they have no plans to make English âcharmantâ style fizzâŚ
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