Beaujolais : Real Estate and multi-annuals deals between Cellier des Saint-Etienne and the Trade.

Monday January 20 2014 by Vitisphere

 

BCD Développement, a recently former Wine Real Estate investment vehicle has ambitions for the Beaujolais region (and beyond). It wants to prove that the pricing/quality predicaments of the AOC are not a fatality.

This team made of two negociants (Georges Dubœuf and Boisset la Famille des Grands Vins) and the Cooperative Cellier des Saint-Etienne (Saint-Etienne-des-Oullières) wants to reshape the Industry’s eco-system.

To achieve this, the structure has a tool kit made of « fermage » real estate contracts  as well as multi-annual commercial deals.

To get going, BCD aims at acquiring first 100 hectares, mainly from current members of the Cooperative Cellier des Saint-Etienne who have no succession plans.

The second tool allows for commercially viability of these hectares of vines. Thanks to a 5-year contract which – while linked to market prices – will allow a profitable business to foster.

« We dropped a –volatile - per HL pricing in favour of a per hectare minimum turnover figure » explains Gerard Large (BCD’s manager as well as Vice-president and Commercial Director of the Cooperative).

While these real estate deals are 90% financed by internal resources, the Neogoce houses gain a stable price-wise supply of wines.

BCD would like to piggy back on the potential success of this set-up and approach Negoce houses from other production regions.

 

The Cellier des Saint-Etienne comprises 240 members with a total of 415 hectares ( a 22,000 HL potential). Boisset La Famille des Grands Vins and Maison Georges Dubœuf have respectivley a turnover of 250m and 60m euros.

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