Taylor’s augments its tawny stocks with Krohn takeover25th June, 2013 by Patrick Schmitt
The Fladgate Partnership has strengthened its position in the growing aged tawny port sector with the acquisition of Wiese & Krohn, a Port house renowned for its Colheitas.
Breaking the news to the drinks business last week at Vinexpo, Adrian Bridge, CEO of The Fladgate Partnership said that the deal would make his company “10% bigger”.
It will also provide The Fladgate Partnership, owner of Taylor’s Port, with around five million litres of stock including “a lot of very fine quality old tawny,” he said.
This will provide his company with an important new source of supply for a growing area of the Port market.
“The big story we still see around the world is the increased demand for aged tawny,” commented Bridge, who launched Taylor’s Scion last year, a tawny port dating back to 1855.
He noted that Krohn sold Colheitas as well as 10, 20 and 30 year old tawny Ports but had never brought a 40 year-old version to market, despite containing enough stocks to produce one.
Bridge also told db that The Fladgate Partnership would maintain the Krohn Port brand but transfer production to Fladgate facilities.
Although he would not reveal the price paid for Wiese & Krohn, he commented, “Buying the company was expensive but we believe the benefits are worth it.”
“It is an example of further consolidation in the Port industry,” he added.
Wiese & Krohn hold “exceptional” stocks of aged tawnies and colheitas dating back to 1863, plus Quinta do Retiro Novo in the Rio Torto Valley in the Douro.
Wiese & Krohn has been owned and run by the third generation of the Falcão Carneiro family. Its stocks include around five million litres of Port which are currently stored in six cellars in Vila Nova de Gaia and one in the Douro.
Following the purchase, these stocks, its operating systems and the team of 35 staff at Wiese & Krohn will be fully integrated into The Fladgate Partnership.
The Fladgate Partnership, which owns Port houses Taylor’s, Fonseca and Croft, currently holds over 500 hectares of vineyards in the Douro.