Friday, 3 June 2016

3.6.16 Agreement Reached over Sale of Garvey; New Sherry Launches

The Philipino Lucio Tan, owner of Asian Alcohol Corporation, has reached an agreement with the administrators to purchase the ailing bodega group Garvey and Zoilo Ruiz Mateos for between 20-25 million euros. The deal will be signed as soon as the administrator gets back from holiday – any day now, and will put an end to five long years of administration and months of complex negotiations. Lucio Tan is not related to Andrew Tan who recently bought bodegas Fundador.

Representatives of the Asian Alcohol Corporation, whose flagship product is Ron Tanduay – one of the top ten best-selling alcoholic drinks in the world – have been in Jerez to tie up the loose ends of the deal to buy Complejo Bodeguero Bellavista and Bodegas Zoilo Ruiz Mateos known as Grupo Garvey, formerly owned by Nueva Rumasa, as well as the supply and bottling contract for Sandeman and the Cerroviejo vineyard.

Lucio Tan's Representatives with Beltran Domecq at Vinoble (foto:diario jerez)

The trade feels this is the best possible outcome for Garvey which at the time of going into administration was in debt to the tune of over 210 million euros. Then the firm had combined Sherry and brandy stocks of 100,000 butts, but those have now dwindled to 10,000 as stock was sold to cover workers’ salaries and administration costs. Lucio Tan’s purchase came at a critical point – just as Garvey seemed destined for liquidation. Let us hope this magnate, who also owns the main Philipine airline along with interests in banking and tobacco, can turn this famous bodega around and create more badly needed employment.

More new Sherries! Bodegas Lustau will shortly launch a new Sherry, Amontillado Tabanco, which will fit between Fino and older Amontillado. Meanwhile Bodegas Yuste is to launch the Amontillado Conde de Aldama, a wine of at least 100 years of age. I tried it and it is incredible that with such age there are still some Manzanilla characteristics and it is not as tannic as one might have expected. It will be on the market at the end of June. The Cooperativa Virgen del Palomar in Trebujena has launched a small batch Fino en rama made from selected butts.

Conde de Aldama

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