Racke expands wine business with Steiner venture
expand their businesses at home and abroad. Steiner will gain
greater access to international distributors for its own label wine
brands, while both firms will be able to provide a better service
for domestic customers.
Racke, the German drinks group which has shrugged off its image as a spirits maker and successfully turned itself into a major player in the wine market, has taken a further step towards strengthening its international wine business.
The company has formed a strategic alliance with Steiner, another German wine group, which it claims will allow both companies to develop their national and international businesses. The alliance comes into effect from 1 January 2003.
Racke's core business is branded wines, while Steiner's focus is on own label wines, and together the two firms believe they will be better able to optimise the range of products and services they can offer to German retail trade.
"This collaboration with Racke opens further chances within Germany as well as abroad," said Professor Dr Marc Steiner, executive chairman of the Steiner Group. "Through this co-operation with a strong partner like Racke, we hope to improve services for the trade, especially in the fields of marketing and logistics."
Steiner will benefit in particular from Racke's growing international distribution, giving it access for the first time to the own label segments in many European countries, such as the UK.
While the two companies will effectively merge their operations to form a new company, Steiner-Racke-Dujardin Holding, they will continue to operate as separate entities. This, according to Racke's chairman, Marcus Moller-Racke, will ensure that both firms remain competitive in their respective business channels.
The new company is expected to post annual sales of around €300 million.
