Rare opportunity beckons as established Rioja brands go under the hammer
Buyers looking to fast-track their market presence will bid on the Rioja brands of Marqués de la Concordia Group at auction at the end of the month.
With many brands operating for decades or even more than a century, often in family ownership, Rioja is a daunting prospect for a newcomer. The moment you start, you are already battling against momentum built over generations.
That is what makes the sale of the commercial brands belonging to Marqués de la Concordia Group so interesting. The international public auction – being run through IAG Auction from 27–29 July – offers bidders the chance to snap up brands that already have strong international presence and market potential.
Taking place as part of the insolvency proceedings involving United Wineries Estates, S.A., United Wineries, S.A. and Marqués de la Concordia Family of Wines, S.L., the sale offers a host of brands. Prominent among them are Federico Paternina, Lagunilla, Marqués de la Concordia and Rioja Santiago.
As the sale comprises intangible assets – i.e. the trademarks for these well-established brands – it is expected to attract a varied selection of bidders. Whether wine-producing groups, industry operators, investment funds or international companies, the auction will be a rare opportunity for any group that sees itself driving growth through Rioja wine.
“Acquiring an established brand enables any operator to accelerate their market positioning much more quickly than by developing a new one from scratch,” explains José María Méndez, project management director at IAG Auction.
“In this case, we are talking about brands with decades of history, international recognition and significant potential for appreciation in value for their future owners.”
A successful track record
Prospective buyers need only look to past performance to see the portfolio’s potential. Within the years 2019–21, the family of brands recorded normalised sales of €18.49 million in Rioja DO. Just over half of that (52%) was earned by Federico Paternina, while Lagunilla was the second best performing brand, with around 29% of that total.
The brands also come with an attractive reach on international markets. Historically, exports accounted for 41% of sales, making the brands a useful springboard for any company looking to expand geographically.
Moreover, the diverse split between regions shelters the brands from domestic and national shocks. The Nordic countries, lucrative partners thanks to monopoly systems, accounted for 27.72% of overseas sales and Central Europe, at 21.93%, followed.
The intangible assets have been valued in accordance with technical criteria based on normalised historical sales figures and current market conditions, allowing potential bidders to make an informed decision on their future.
Unless a bidder voluntarily decides to assume any applicable encumbrances, the portfolio will be transferred without any encumbrances to the successful purchaser.
How to get involved
The sale is open to domestic and international operators, offering a rare opportunity to acquire brands with a long history and proven market appeal. That is particularly compelling in Rioja, a region which is bucking negative trends seen elsewhere.
Open internationally, the sale will be conducted through the IAG digital platform. Those interested are required to register in advance and pay the deposit as specified in the sale’s terms and conditions.
Such information, as well as valuation reports and contact information, can be found on IAG’s website here.
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