Brown Brothers Acquires Tamar Ridge Estates

For immediate release

Brown Brothers Acquires Tamar Ridge Estates

Brown Brothers has entered into an agreement with Gunns Limited to purchase its Tamar Ridge Estates vineyard and winery interests.

Brown Brothers CEO, Ross Brown said the family was delighted to have the opportunity to acquire Tamar Ridge Estates which will be the ideal complement to its existing vineyards and brands.

"The Brown Brothers Board has been carefully considering how global warming may impact our vineyards through drought and high temperatures and recently adopted a strategy to source grapes from cooler areas. As part of this process, we discovered Gunns Limited in Tasmania - owners of Tamar Ridge Estates (whose brands include; Tamar Ridge, Pirie, Devil's Corner and Coombend) had decided to sell its vineyard and winery investments," he said.

"This acquisition complements our existing portfolio. For example, we don't currently have the vineyard sites to compete in the pinot noir category (the fastest growing red wine style), but 30% of fruit from this acquisition is high quality pinot. In addition, we have always believed that Australia's best sparkling wine will be made from the Victorian 'High Country' and Tasmania, and a significant portion of this acquisition is super-premium sparkling fruit.

This is a very sound business that ticks all our strategic objectives for growth in pinot and sparkling, and at the same time reduces the risk of drought and associated high temperatures and scarcity of water," according to Mr Brown.

Tamar Ridge Estates brands have wide national distribution and are growing strongly. Mr Brown says the company plans to maintain the brands' independence and integrity by ensuring autonomous brand management.

This acquisition will be completed on Tuesday 31 August 2010.

ENDS.

Editor's Note:
With a history dating back to 1889 Brown Brothers is one of Australia's most recognised and respected wine businesses. Owned and operated by the Brown family for more than 120 years, Brown Brothers crafts some of the most popular wines in the county. Currently its vineyards are all located within Victoria. They are Milawa (est. 1885), Mystic Park (est. 1968), Whitlands (est. 1982), Banksdale and Heathcote (est. 1999).

For more information contact
Scott Darkin, Dig Communications
03 8606 3700,
0435 842 410 or
[email protected].

SOURCE: Brown Brothers