Andrew Peller Ltd, headquartered in Grimsby, Ontario, is buying three British Columbia wineries for $95 million. CEO John Peller has signed definitive agreements to acquire Black Hills Estate Winery and Gray Monk Estate Winery. A letter of intent aims to acquire Tinhorn Creek Vineyards near Oliver.
The deals, expected to close by end of October, will offer the wineries access to capital as well as sales and marketing support that they did not have as stand-alones.
Gray Monk Estate Winery was founded in 1972 by George and Trudy Heiss. They own 75 acres north of Kelowna overlooking Okanagan Lake.
Black Hills Estate, south of Oliver, is centered in the middle of Canada’s only official desert, a microclimate that provides one of the hottest and driest sites in the country.
Tinhorn Creek, near Oliver, was started in 1993 by the Shaunessys and Oldfields families. They now have 150 acres under vine.
Andrew Peller Ltd has 14 per cent share of the Canadian wine market and 37 per cent share of the English Canada market, according to market analyst Brian Pow. That’s second only to Arterra Wines Canada formerly Constellation Brands.
Peller already owns several wineries in B.C. including Sandhill, Red Rooster Winery and Calona Vineyards as well as wineries in Ontario and Nova Scotia.
Sources: Globe and Mail October 10, 2017, CBC.ca