Portugal’s Mello family is looking to purchase domestic wineries to increase its wine business as it takes advantage of a highly fragmented market in the southern European country.
(Bloomberg) — Portugal’s Mello family is looking to purchase domestic wineries to increase its wine business as it takes advantage of a highly fragmented market in the southern European country.
The billionaire family, whose flagship brand is Ravasqueira, said on Tuesday that it had acquired the Quinta do Retiro Novo wine estate and agreed to rent the Quinta do Cotto and Paco de Teixeiro wineries in northern Portugal.
“Our goal is to become one of Portugal’s top three wine producers over the next seven years,” Salvador de Mello, chief executive officer of the family-owned holding company Jose de Mello Group, said at a news conference in Lisbon. “The wine sector in Portugal is very fragmented and we want to take part in the consolidation.”
The group also took control of the Krohn port wine brand through a newly created investment vehicle Winestone, said Mello, who declined to provide details about the investments in these acquisitions.
The Jose de Mello Group owns Bondalti SA, Portugal’s biggest chemical company and a major producer of chlorine, a network of hospitals and assisted-living homes, and has a 16.7% stake in toll-road operator Brisa-Auto Estradas de Portugal.
Read More: Portugal’s Mello Clan Sidesteps Virus Crisis With Brisa Sale
The group is looking to expand its existing businesses and has no interest in selling its current stake in Brisa, Mello said. “We’re not selling any assets, on the contrary,” he said.
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