Australia: Woolworths expands Asia presence with Summergate acquisition
Australian supermarket chain Woolworths has announced that its subsidiary Woolworths Liquor Group has acquired the China-based wine and drinks distributor, Summergate Fine Wines and Spirits (Summergate).
Summergate is a drinks distributor representing a portfolio of around 80 global brands. It has a small fine wine retail business, as well as a limited online and direct retail operation. Established in Shanghai in 1999, it employs over 400 people across 13 offices and 11 distribution centres.
Commenting on the acquisition, Woolworths CEO Grant O’Brien said: “This is a very small step into China, capitalising on our Liquor expertise. We have a conservative investment lens, particularly in relation to international acquisition opportunities. Summergate is predominantly a distribution business and fits well with our supply chain and Liquor capabilities”.
Woolworths Liquor Group Managing Director Brad Banducci added: “Summergate is a small, complementary acquisition for our Group. As Australia’s leading drinks business, we have significant experience in distribution, retail and brand management that we will leverage in the greater China market. Likewise, we expect to learn a lot from the Summergate team that we could apply in Australia".
Terms of the deal were not disclosed.