Agenda • Overview • History • Background • Mission Statement • Current strategies • Major acquisition by Vincor Vincor’s history can be followed back to 1874 with the foundation of Niagara Falls wine organization, established by Thomas Bright and Francis Shiriff. In 1993, these organizations; Cartier, Inniskillin and T. ). Splendid, consolidated together to frame Vincor. With a general piece of the overall industry of 25%, Vincor has immovably settled itself as Canada’s driving wine and related items organization.
At that point Vincor began extend universally in 21st century. Organization’s CEO Donald Triggs would have liked to expand generation of wine by half 60% which brings about expansion in yearly deals. Their long haul objective was to vertical incorporate into vineyards of California, Australia and Argentina. Acquiring of Goundrey Goundrey wine is the brand from Australia. In any case, it just sent out 3% of its products. In any case, Australia was number one exporter of UK and UK is a spot where wine is foreign made on a vast scale.
Australian business sector depicts a spot where there is interest for premium wines. So Vincor wines exploited this circumstance and chose to get Goundrey in light of the fact that it has solid appropriation system all through Australian states. 85% of Goundrey’s business is for $15-$30 super premium wine market and even Western Australia has a decent name for ultra and super premium wines. External analysis of the Wines industry High Rivalry There are large number of rivals present in the industry.
Even though Vincor wines is a very well established brand in the industry there are rivals in the market because Vincor wines specializes in the premium brand of wines so there are other brands which are selling good quality wines at a lesser price. Fragmented Market This market consists of many small and mid-sized companies that are competing with each other and other large companies like Vincor. Higher threat of substitutes Vincor wines sell high priced wines which are very expensive so it is not pocket-friendly.
They have targeted only the upper class. But because of the presence of other brands of wines in the market that sell wines of good quality but at pocket friendly price they have the threat of the substitutes and also on the other hand there are also many other drinks available in the market to the masses. Competitive positioning Vincor wines is Canada’s largest producer of wines and ranks fourth largest in North America. Out of the many established and well-known brands available it has total of 22% of the market share in the wines industry.
It has very strong regional standing because of good position in the North American continent. Now if we take a look at the financial standing of this company we can say that it’s in a very good position as it’s very evident from the year 2002 report. Regarding the strategic vision of Vincor wines it’s very much modern in its approach because they are quite open to exploring and venturing into new countries for expanding their empire. If we talk about the distribution network it’s very strong and they make sure that they deliver their end product to every nook and corner of this world.
Major acquisitions by Vincor over time (1996- 2012): “1996-Vincor becomes largest winery in Quebec with purchase of Dumont Vins et Sparitueux 1996- Vincor acquires Okanagan Vineyards 1996- Acquires London Winery 1997- Acquires RJ Grape Inc. 1998- Acquires Spagnols Wine & Beer making Supplies Ltd. 2000- Purchased Hogue Cellars. 2001 – Opened their Niagara Winery. 2001- Launch R. H Philips products in Canada. 2002- Purchased Goundrey wines Western Australia. 2004- Purchased Amberley Estate Ply Ltd. Of Maragaret River, Australia. 2004- Purchased Western Wines UK 2012- dropped the name Vincor using Consellation Brands. ” (http://www. winesofcanada. com/vincor_history. html, n. d. )
Opportunities for Vincor: U. S. A – Expansion in America Vincor is the fourth largest producer of wine in America and they even have opportunities to move up in the list. America is the 3rd largest wine market in the world which is a great option to Vincor for expansion. There is an immense possibility of Vincor to grow in the market as the wine market is growing rapidly. Most of the America’s wine comes from California, it has reputation for excellent wine.
This market is easy for Vincor to tap because it is open to entry and exit and very low barriers to entry. Moreover, there is not much competition in the American market, as there is only one major company-E&J Gallo, which has a significant market share and accounts for almost 30% of the total production. All things considered, there can be seen an expanding interest of Australian Wines in North America, so if Vincor chooses to just stay in America, it won’t have the capacity to exploit the opportunities to meet the increasing demand of Australian Wines in America and Canada.
Acquisition of Goundrey UK is viewed as the wines pot industry, has switched French wines imports with Australian Imports as a huge red wine shipper. With Australian wine utilization in Canada and U. S. , Vincor can exploit this development by acquiring an Australian to take care of this expanding demand. Goundrey fit into the present strategy of Vincor of item separation as, Goundrey has 85% super premium market as their segment market. Goundrey is one of the biggest winery in Western Australia and has a major share of market in Australia.
So it was a win-win circumstance for Vincor wines on the grounds that it was from starting great at offering premium quality wines with a specific end goal to grow their realm and go worldwide they procured Goundrey wines from Australia. What’s more, this would empower them to wander into the Chinese and Japanese market and in the meantime build up a notoriety around the world. Recommendations: Keeping in mind the end goal to accomplish its target of turning into noteworthy player, it should be in 5-6 different markets and since it is as of now has a vicinity in north America, Vincor ought to look towards different markets that it can enter.
All things considered, Australia is one of the best markets to enter on the grounds that this will give Vincor a chance to venture into key new world wine markets as it is quickest developing section, case in point as of now specified the UK is one of the noteworthy expanding nations as Australian wine has turn into the top vendor pushing aside France. It now holds 7 wine brands out of the main ten in the nation. Since Goundrey is a local brand, it will permit Vincor to likewise grow in the Australian household market in the light of the fact that Australian wine is the top merchant in Australia too.
