LIVERMORE, CALIF.--(BUSINESS WIRE)--
The Wine Group (“TWG”) today announced that it has entered a strategic partnership with MPL Brands NV (“MPL”), owner of Rancho La Gloria, the largest brand in the wine-based ready-to-drink beverage category2. The exclusive deal includes the rights to represent Rancho La Gloria agave-based wine products in the U.S. The Wine Group will assume sales of Rancho La Gloria to grow its reach with new customers while bolstering access to products with existing customers. As part of the transaction, The Wine Group has made a minority investment in MPL Brands NV and will become the company’s sales and production partner, enabling future product innovation to rapidly grow at scale.
With this announcement, The Wine Group immediately diversifies its portfolio while gaining a leadership position in the rapidly growing “4th category,” that encompasses ready-to-drink brands. The Wine Group will streamline sales and production of Rancho La Gloria. Sales of Rancho La Gloria products are fast approaching 2 million cases in 2021 and are growing at over 80% annually3.
“The first time we met Michael Patane, Founder and CEO of MPL, we knew that we wanted to work closely together on innovation and growth for the benefit of both our companies. Michael and his entire team share TWG’s passion for building new brands that connect with all types of alcohol beverage consumers,” said Cate Hardy, CEO of The Wine Group. “Their demonstrated track record of product innovation is resonating in the marketplace, and TWG brings industry-leading expertise in sales and operations. Together, this partnership will propel both of our companies to greater success.”
While TWG leverages its scale in sales and operations to bring MPL products to more consumers, the MPL team will focus on the company’s deep innovation pipeline, doubling down on product development in the RTD category as well as in wine and spirits. With this announcement, consumers can expect access to exciting new products, including cutting-edge flavors and formats.
“Since inception we have been a pioneer in the RTD category with our award-winning Rancho La Gloria, consistently demonstrating our strength as innovative brand builders,” said Michael Patane, Founder and CEO of MPL Brands. “This partnership with The Wine Group allows us to accelerate the momentum we have achieved with Rancho La Gloria and strengthens our production capabilities, keeping pace with our growing consumer demand. The unique culture at MPL is paramount to our success and this partnership could not have happened without the hard work and dedication of our incredible team, partners, and loyal customers. We are honored to welcome The Wine Group into the MPL family and excited for new product launches in 2022.”
The financial terms of the deal were not disclosed.
1 Nielsen, #1 Wine Based Cocktail, ending 10/9/21
2 Nielsen, #1 Wine Based Cocktail, ending 10/9/21
3 Nielsen, #24 Wine Brand Overall, the fastest growing, +84%, & lowest ACV % in the Top 35 Wine Brands. Latest 26 weeks, Total US xAOC ending 10/9/21
About The Wine Group
Established in 1981, The Wine Group is the world’s third largest winery by volume and is management-owned and operated. Its portfolio of wines includes Franzia, Cupcake, Chloe, Benziger, Tribute, Imagery, 7 Deadly, Flip Flop, Almaden, Main & Vine, and numerous corporate brands.
About MPL Brands NV
MPL Brands NV is a privately held import, distribution, marketing and sales company for innovative premium alcohol beverages. Dedicated to making award winning, ready-to-drink wine-based products, tequilas, hard seltzers and other ready-to-drink offerings, the MPL mission is innovation, quality and consistency. For more information, please visit rancholagloria.com
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