News Alert: Delicato To Acquire Coppola, Boosting Premium StableJune 24, 2021
Delicato Family Wines has agreed to acquire Francis Ford Coppola Winery, significantly bolstering Delicato’s premium portfolio. The transaction is expected to close in the coming month. Terms weren’t disclosed. The deal will add more than a million cases of volume to Delicato’s total, including Coppola’s Diamond Collection, retailing in the fast-growing $20 range. Impact Databank estimates that, including Coppola, Delicato’s volume was up 26% to 17 million cases last year, on a pro forma basis.
Under the agreement announced today, the Francis Ford Coppola wine portfolio and two facilities in Sonoma County—the Francis Ford Coppola Winery and the Virginia Dare Winery located in Geyserville, including the Archimedes Vineyard—will join Delicato. Francis Coppola will take an equity stake in Delicato Family Wines and join the company’s board. Coppola CEO Corey Beck will join Delicato’s executive leadership team as EVP, production and chief winemaker. Inglenook and Domaine de Broglie Winery and vineyard will remain separately owned and run by Francis Ford Coppola and his family.
According to Impact Databank, Delicato already ranks as the fifth-largest wine supplier in the U.S. by volume pre-acquisition, after E.&J. Gallo, The Wine Group, Constellation Brands, and Trinchero Family Estates, respectively. Led by Impact “Hot Brand” Bota Box, Delicato’s volume increased from 10.3 million cases in 2017 to an estimated 15.4 million cases last year, representing more than half the overall depletion growth in the U.S. wine business over that period.
While Delicato has premiumized its portfolio over the years with brands like 1924, Three Finger Jack, and Z. Alexander Brown, it will now gain another premium player with Coppola’s Diamond Collection, which increased 10% to 1.1 million cases in the U.S. last year, according to Impact Databank. The Diamond Collection includes Claret, Pinot Noir, Merlot, Malbec, Zinfandel, red blend, Chardonnay, and rosé bottlings, among others.
“There is a strong cultural fit between our two companies, and by combining two highly complementary portfolios, we create a more diversified winery,” stated Delicato Family president and CEO Chris Indelicato. “This places us in a strong position in key growth categories to capitalize on positive market trends.”
“I am proud to announce that I have found the perfect fit to take our family winery to even greater heights,” stated Francis Coppola. “Delicato is also family-owned and shares similar core values as both companies are anchored by long-term sustainable focus and a foundation built on family values: integrity, respect, quality, accountability, partnership, excellence, and community.”—Daniel Marsteller
|Delicato’s Key Brands Post-Acquisition
(thousands of 9-liter case depletions)
|Z Alexander Brown||185||212||15%|
|Total Key Brands||9,964||13,418||35%|
|Source: IMPACT DATABANK © 2021|