Wagner sells Meoimi for 315 million bucks

CJ_Beazley · July 1, 2015, 4:58pm

Roberto_Rogness · July 1, 2015, 5:01pm

“The transaction includes no vineyards.”

A third of a billion for the NAME???

Jorge_Henriquez · July 1, 2015, 5:34pm

Pretty much my exact thought.

M_A_T_T_H_A_R_T_L_E_Y · July 1, 2015, 5:42pm

It’s not really the $315 million as much as it is they paid 24x EBITDA if I read it correctly…

That is RICH

PeterH · July 1, 2015, 5:49pm

But doubling in volume every two years.

P Hickner

brigcampbell · July 1, 2015, 5:50pm

They probably got the contracts for the fruit too?

If it was just the brand, that’s sick. Good for him.

J_Galang · July 1, 2015, 5:51pm

Sheesh, just makes me realize how “limited” my wine business knowledge is and how broad the wine market really is. Before this post I never even heard /seen this brand but they produced a heck of a lot of wine according to the article. Well kudos for them, good to see California business doing well

Roberto_Rogness · July 1, 2015, 6:12pm

“Before this post I never even heard /seen this brand but they produced a heck of a lot of nearly undrinkable wine according to the article.”

FIFY!

mmarcellus · July 1, 2015, 7:25pm

According to the article, Meiomi went from 90,000 cases in 2009 to a projected 700,000 cases in 2015. I think that the fruit is fungible in this case. Constellation is probably much better able to source fruit as volume increases, and it’s a logical move to sell the brand to them if pure growth is the goal. In fact, the brand is arguably worth more to them than it is to Wagner, but the price is still crazy. Constellation seems to go through phases where they live (and eventually die) by rollups. This may be one of those phases.

Thomas_Keim · July 1, 2015, 7:42pm

If they can up the production to a million cases a year, they will break even within 3 years -

mmarcellus · July 1, 2015, 8:42pm

I see a bright future for you as an M&A consultant

NoahR · July 1, 2015, 8:45pm

I just threw up a little bit in the back of my throat. One of the worst wines I’ve had in years. The PN equivalent of Caymus 40th?

Drew_Goin · July 1, 2015, 11:23pm

Goo-wah!

jcoley3 · July 2, 2015, 5:04am

Wow. And I thought the sale of ‘The Prisoner’ was an amazing example of spinning off a lucrative brand as fast as possible for maximum bucks.

ericskitei · July 2, 2015, 5:20am

Midas Touch

ky1em1ttskus · July 2, 2015, 5:40am

Good for them. I haven’t had a bottle of this yet, but I’m curious enough that I’ll probably grab a bottle.

Gary_York · July 2, 2015, 5:49am

Make sure you have a back-up bottle.

GregT · July 2, 2015, 6:14am

It’s crap but I’d rather own Snickers than the local chocolate shop on the corner. I wouldn’t have to eat the shit. Good for Wagner. I hope he ends up making some drinkable wine.

ericskitei · July 2, 2015, 6:22am

It’s a crowd pleaser like most of the Wagner wines. I have a bunch of it at my house for guests that like fruit bomb red wine, which surprisingly many do.

Alicia_C · July 2, 2015, 3:07pm

Saw the news yesterday, but was catching up on the Wine Enthusiast story today ( http://www.winespectator.com/webfeature/show/id/51784) … Wagner is only 33 years old?! I’m slightly impressed (or does that mean, I’m just getting old?).

Have to agree with those calling the wine a crowd-pleaser. It’s one of the few wines I can confidently recommend at restaurants to my non-wine-geek friends who want a Pinot (or any red for that matter), but don’t have a sophisticated palate or better understanding of wines. 95 percent of the time they will order a second glass.