Vincor International Inc

Vincor International Inc. was Canada's largest wine company and North America's fourth largest in 2002. According to the company’s mission statement, their goal is to become one of the world’s top ten wine producers, producing Vincor-owned new world premium wines which would be marketed and sold in all major consuming regions. Thus, as part of its growth strategies, Vincor has entered the U.S but in order to further fulfill mission, it must stretch beyond the borders of the North America. Although Vincor has had successes in its other acquisitions, should they acquire the Australian company, Goundrey Wines (GW)?

The current trend in the wine industry is moving towards various consolidations in retail, wholesale and production. The key was in distribution and marketing and there is an increase in the emergence of world brands and competitors. This is an opportunity for a new world producer such as Vincor. Vincor has a dominant position in Canada and has some strong brands. Because Vincor grows by acquisitions, the acquisition of GW would give it complementary product lines since GW produces ultra premium wines. GW is located in Western Australia which produces and markets approximately 26% of the country’s premium and super-premium wines. Australia has about 5% of the world’s production as well and there is the expectation of