Constellation Brands Acquire 40 Percent of Italian Ruffino
Staff Writer - December 8, 2004
 Following the $1.36 billion (€1,014 billion) acquisition of the prestigious California wine company Robert Mondavi Corp., the U S drinks giant Constellation Brands has set its sights on the Italian premium wine segment and, on December 3 announced that it had acquired 40 percent of Italian fine wine company Ruffino for approximately $80 million.
Under the deal, the fine wine division of Constellation Brands, Franciscan Estates, will manage the distribution of Ruffino's wines in the US.
The Folonari family, owners of Ruffino since 1913, continues to retain the majority interest in the Tuscany based company and maintains responsibility for day-to-day wine making and operations. Adolfo Folonari will continue to focus on international operations, and his brother, Luigi Folonari, will continue to focus on domestic operations.
In announcing the venture, Jon Moramarco, president and CEO of Constellation's Franciscan Estates, said, "The wine brands and rich heritage of Ruffino give us a much-desired place in the attractive Italian premium wine category, and we look forward to expanding the Ruffino brand's distribution, image and prestige."
Adolfo Folonari, added, "We're excited about partnering with Constellation. We believe that Franciscan Estates will dedicate resources, focus and distribution capabilities that we need to ensure a robust and prosperous future for making Ruffino more successful."
The new venture gives Franciscan Estates an entree to the attractive Italian premium wine category. The 4,000 acres of Ruffino estates, however, including 1,500 acres of vineyards located in the best wine producing areas of Tuscany, will continue to be entirely owned by the Folonari family. The prestigious 100-acre Borgo Conventi Estate, purchased three years ago and located in Northern Italy's Friuli region, is also part of the family's properties.
| Source: Constellation Brands, Inc. |
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