French wine group Advini has commenced exclusive negotiations with the Cordier by InVivo business to combine parts of their operations.
The proposed transaction would see Cordier by InVivo – a subsidiary of the French national union of agricultural cooperatives, Groupe InVivo – contribute assets to an enlarged Advini. If successful, the combined entity would have InVivo as a significant shareholder alongside Advini’s existing family owners, who would retain majority control.
Details on the size of stakes each party would hold were not disclosed.
Under the plan, Advini would reinforce its position in Bordeaux varietals through the Cordier brand and gain entry into sparkling wine via Café de Paris, while also expanding its international footprint using Cordier’s distribution network in markets including the US, Canada, Japan, South Africa and parts of Europe. The combined business would generate around EUR320m (US$371m) in annual sales, with around 65% coming from international markets.
“The new entity we would create would also enable us to achieve significant commercial synergies and increase the profitability of our group,” said Advini chair Antoine Leccia.
InVivo CEO Thierry Blandinières added: “In an economic and geopolitical context that has never been more uncertain, with a declining consumption trend over the past few years and climate change impacting wine production, the industry is facing unprecedented challenges.
“It is within this framework that I wish to bring part of our assets and the full support of our group to Advini.”
The transaction remains subject to employee consultation, regulatory review and the signing of definitive agreements, with both parties targeting completion by the end of March next year.
Earlier this month, US wine group Ste Michelle Wine Estates inherited its third owner in just over five years.
