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From: lewis.perdue@wineindustryinsight.com

Subject: WII News + New Finance For The Wine Biz: Major REIT Steps In As Banks Beg For Bailouts - CEO Talks Strategy, Deal Size, Type, Location

Date: 2009-03-02 13:27:38

To: Emailing List Subscriber
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Judge Warns Conti/Charles B Mitchell To File Complete Documents Or Lose Chapt 11 Protection

Citing incomplete filings, Bankruptcy Judge Michael S. McManus has ordered MC2 Wines, dba Charles B. Mitchell Vineyards/Conti Estate Winery to show cause why it should not have its Chapter 11 Bankruptcy protection revoked.

McManus has set a hearing on the matter for March 23 at the bankruptcy court in Sacramento.

As previously reported by WII, Conti faces a March 9 hearing to determine if three growers will be allowed to enforce their liens for unpaid winegrapes.

New Finance For The Wine Biz: REIT Money Steps In As Banks Beg For Bailouts - CEO Talks Strategy, Deal Size, Type, Location

The wine industry’s largest player in sale/leaseback financing for wineries, and vineyards -- Entertainment Properties Trust (NYSE: EPR) -- is currently looking for more high-quality wine deals.

EPR has made recent headlines with its pivotal roles in a number of major fine-wine transactions including Carneros Vintners, and Ascentia, in Sonoma County; EOS Estate in Paso Robles, CA; Napa Valley’s Cosentino Winery and Duncan Peak in Hopland, CA.

David M. Brain,  President & Chief Executive Officer or EPT, shares his strategy with WII: the types of deals the company is looking for, their size, location, characteristics and the decision path that led them to wine.


Entertainment Properties Trust is a real estate investment trust (REIT) with more than $2.6 billion in real estate assets. It began life with sale/leaseback arrangements with AMC movie theaters and quickly became the largest owner of megaplex movie theaters in America. It diversified into entertainment retail centers, as well as other destination recreational and specialty investments including vineyards and wineries. 

While its stock price has been hammered like every other publicly traded security, EPR continues to pay dividends to its shareholders and continues to raise funds for acquisitions, including those in the wine industry.

The full article (which is 1,700 words long) is premium content, available to subscribers to Wine Industry Insight's VIP Content Center (member entrance).

Please click here if you are interested in subscribing.


WII: Why the wine industry? That seems like a departure from your previous “core” investments.

WII: How does the wine industry measure up to these standards?

WII: What’s the inflection opportunity in wine?

WII: Enduring Value?

WII: Excellent Execution?

WII: Attractive Economics?

WII: Advantageous Position?

WII: Who’s your ideal client?

WII: What size deals? What’s too small? What’s Too big?

WII: How about high-profile wineries?

WII: Are you looking just at The West Coast? How about offshore?

WII: How about bankruptcy deals?

Purple/Sonoma Wine Company Inks Deal With Cartlidge and Brown/Greenfield

Purple/Sonoma Wine Company has signed a long term lease for the Napa County production facility owned by the Greenfield Wine Company (dba Cartlidge & Browne Winery), according to sources close to the transaction. The ownership of the building has not changed. An official announcement is expected Monday.

Greenfield Wine Company will lease back a portion of the facility where it will continue to operate the Cartlidge & Browne Winery and the Lot 205 Winery, Stratford and Moser Scharding brands.  The ownership structure of the winery has not changed in any way.
Purple Wine Company will utilize the facility to provide a wide range of wine making and wine production services.  Cartlidge & Browne will be a client of Purple Wine Company for a variety of services.

Purple Wine Company is in a position to develop fully the outstanding potential of this 115,000 square foot facility, while Cartlidge & Browne Winery will be able to focus on its core business and benefit from dramatically reduced overhead.


Foley Snaps Up 70% of Kuleto Estate Winery

The Wine Spectator has reported that, “Foley Family Wines is buying a controlling interest in Kuleto Estate, the Napa Valley winery owned by restaurateur Pat Kuleto. The deal, which will give Foley a 70 percent share in the brand, winery, inventory and part of the vineyard, is expected to close next week.”


Brown-Forman Schedules Financial Conference Call

Brown-Forman Corporation will release its financial results for the third quarter of fiscal 2009 on March 10 by 8:00 a.m. (EST).

The company will host a conference call to discuss the results at 9:30 a.m. (EDT) that same morning.

All interested parties in the U.S. are invited to join the conference call by dialing 888-624-9285 and asking for the Brown-Forman call. International callers should dial 706-679-3410 and ask for the Brown-Forman call. No password is required. The company suggests that participants dial in approximately ten minutes in advance of the 9:30 a.m. start of the conference call.
A live audio broadcast of the conference call will also be available via Brown-Forman’s Internet Web site, www.brown-forman.com, through a link to “Investor Relations/Events and Presentations.” For those unable to participate in the live call, a replay will be available by calling 800-642-1687 (U.S.) or 706-645-9291 (international). The identification code is 87273422.

A digital audio recording of the conference call will also be available on the Web site approximately one hour after the conclusion of the conference call. The replay will be available for at least 30 days following the conference call.



================= CONTACT DATA ====================
Lewis Perdue
670 W. Napa St., Suite H, Sonoma, CA 95476
Phone: 707-326-4503, fax: 707-940-4146
Email: lewis.perdue@wineindustryinsight.com