Allied Domecq Purchases Two Wineries in Argentina

James Molesworth
Posted: July 9, 2001

Allied Domecq, the global wine and spirits group, has purchased two Argentinean wineries, Bodegas y Viñedos Santiago Graffigna and Viñedos y Bodegas Sainte Sylvie, from a venture-capital fund in Argentina. The total price was $42.9 million, which includes repaying $5.4 million of debt.

The purchases continue the recent trend toward consolidation in the global wine and spirits market, in which Allied Domecq has been a major player. Only a week ago, the British firm confirmed a deal to buy Sonoma County's historic Buena Vista Winery, and last December, it bought the G.H. Mumm and Perrier-Jouët Champagne houses.

Graffigna and Sainte Sylvie currently employ more than 140 people combined and own about 1,200 acres of land, of which 422 acres are under vine. Together, the two wineries have sold around 900,000 cases of wine in Argentina so far this year. Graffigna's wines -- which include Malbec, Barbera, Syrah, Cabernet Sauvignon and Pinot Grigio from the Tulum Valley -- have been exported to the U.S. market since early 2000 by T.G.I.C. Importers, Inc.

"The acquisition of Graffigna and Sainte Sylvie represents a further step in our strategy to build a global wine business and is a significant addition to our existing wine operations in Argentina," said Allied Domecq's chief executive, Philip Bowman.

Allied Domecq already owns Argentina's Bodegas Balbi and its 250 acres of vineyards, which it purchased in 1992. The Mendoza winery, which formerly operated under the name Bodegas Domecq, makes Malbec, Cabernet Sauvignon and Syrah.

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Check our recent ratings of Graffigna wines.

Read recent news about Allied Domecq:

June 29, 2001
Deal Sealed for California's Historic Buena Vista Winery

May 8, 2001
Sonoma's Buena Vista Winery May Be Sold to Allied Domecq

Dec. 13, 2000
Allied Domecq Buys Mumm and Perrier-Jouët Champagne Houses

Read James Molesworth's recent tasting reports on South American wines:

March 31, 2001
Coming of Age in South America

March 31, 2000
South America's Peaks and Valleys

Read recent wine news from Argentina:

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Bordeaux's Michel Rolland Releases Argentinean Wines

April 16, 2001
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March 14, 2001
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Feb. 1, 2001
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Oct. 13, 2000
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