Grupo Estevez has just completed the purchase of 400 hectares of vineyard, which used to belong to Pedro Domecq, from Beam Global. Estevez, which owns important brands such as Tio Mateo, La Guita, Real Tesoro and Valdespino has thus doubled its vineyard holding, making it the biggest vineyard owner of all Sherry companies with over 10% of plantations. Because of the recent uprooting and abandonment of vineyard bringing the total down to about 6,500 hectares, Estevez has been intensifying its search for more vineyard to guarantee a bit over half its grape requirements to fulfil contracts.
The firm, which supplies the Mercadona supermarket chain with over 50 brands (not all Sherry) has increased sales to supermarkets such as Tesco, and others whose suppliers had been hit by the Sherry Crisis. Estevez had toyed with the idea of buying vineyard from Zoilo Ruiz Mateos, a subsidiary of Nueva Rumasa-owned Garvey who are in receivership, before opting for the Beam Global deal, and is satisfied with that, as they are not intending to be 100% self sufficient.
The loss of nearly a third of Jerez vineyards and the adjustment between supply and demand coupled with growing demand for table wines presaging a tension in grape and must prices decided Estevez to make the purchase to guarantee future competitiveness. They are hoping vineyards can be made profitable after a decade of grave problems for growers and bodegas alike. They have already made 3-year price agreements with their contracted growers in the hope of preventing further loss of vineyard and employment.
It would be interesting to see if other groups decide to extend their vineyards. Especially if any thinks of emulating Valdespino with their single vineyard soleras. Which perhaps makes more sense when you own the land yourself.
ReplyDeleteAnd maybe it is the white table wines which are going to save the decaying vinyards that have been uprooted in recent years. Time will tell.
Definitely it is good news that there is movement in this aspect.