Fetzer sold to Chilean wine company for $238 million

[caption id="attachment_28104" align="alignleft" width="225" caption="(courtesy of CF Napa)"][/caption]

HOPLAND -- Brown-Forman Corp. (NYSE: BFA, BFB) today said it has agreed to sell Fetzer Vineyards to Viña Concha y Toro S.A. (NYSE: VCO) for $238 million after reviewing options for Mendocino County-based wine operations.

The sale is expected to close next month. It includes neither the superpremium Sonoma-Cutrer brand nor the Brown-Forman's longstanding sales and marketing agreement with Korbel California Champagnes of Guerneville.

The acquisition includes brands Fetzer, Bonterra, Five Rivers, Jekel, Sanctuary and Little Black Dress, 1,060 acres of 1,060 acres of owned and leased vineyards in Mendocino County, wineries with production capacity of 9.5 million gallons in Hopland and 1.58 million gallons in Paso Robles on the Central Coast of California and a bottling plant. Fetzer employs about 240.

Sales for the Fetzer brands in fiscal 2010 were $156 million for 3.1 million cases. Annual production of the Fetzer brand itself is 2.2 million cases and of the certified-organic Bonterra brand, 300,000 cases.

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