Corus, the largest privately owned wine producer in the Pacific Northwest, had reached a point where its five brands required national distribution. The family had invested heavily in vineyards to support increased sales and recognized production facilities would need to be expanded as well. The continuing financial demands were becoming a burden.
Find a partner with access to national distribution channels and a product mix that accommodated the Corus portfolio of brands.
Exvere contacted and interviewed many of the leading wine producers and distributors as well as private equity investors. Several made exploratory visits and three expressed interest in pursuing a transaction.
Exvere negotiated and structured an asset-based transaction with Canandaigua Wines, a subsidiary of Constellation Brands, Inc. (NYSE: STZ) that included cash, deferred royalties, and long-term purchase contracts. The family retained the vineyard properties which now includes many leading producers in addition to Canandaigua.