SWEDEN – Viva wine group, one of the leading wine groups in the Nordic monopoly markets has announced its decision to merge two of its Swedish subsidiaries, a move that seeks to create the foremost choice for partner brands seeking to market excellence and efficient distribution on the Swedish market.
The move will see Chris wine and spirits AB and Winemarket Nordic AB join to form Morningstar Brands AB, an entity that is expected to become a top-5 importer in sales volumes.
According to the Saint Louis chardonnay producer, Morningstar Brands AB will become the leading partner brands importer in Sweden, when the two companies merge in January 2024.
In Sweden, the group reported a 2.7 percent growth in sales volume to US$599 million during the fourth quarter of 2022, with an increased market share to 26 percent.
The new Morningstar Brands AB management team will consist of: Patrik Stare, Managing Director/Partner; Staffan Dahlgren, Executive Partner; and Stefan Petersson, Executive Partner.
Emil Sallnas, Viva Wine Group CEO said, “Morningstar Brands AB will be dedicated to securing its position as the top partner brands importer in Sweden delivering superior logistics, marketing, and sales processes to brand owners seeking excellence.”
“We have built an impressive team that truly understands partner brands. I feel confident our model will prove itself.”, says Patrik Stare, Managing Director of Chris Wine & Spirits.
Staffan Dahlgren, Managing Director of Winemarket, said, “Our capability in collecting, processing, and analyzing relevant data is key to shaping our successful marketing strategies.”
The merger comes at a strategic time when the Sweden wine market is expected to grow annually by 5.14 percent, CAGR 2023-2028 according to a report by Statista. The revenue in the wine market amounts to US$1.8bn in 2023.
Additionally, the Wine market volume is expected to grow by 3.6% in 2024 and amount to 138.0m L by 2028.
Viva Wine Group is Sweden’s largest wine company and operates in several countries around the world. In Sweden, the business is run by Giertz Vinimport, Wine Team Global, Chris Wine & Spirits, Iconic Wines, Winemarket, and Tryffelsvinet.
In 2022, net sales for the group increased by 14.8 percent to SEK 3,825 (US$3,331) million. Operating profit for full-year 2022 was SEK 310 (521) million.
For the full year 2022, the wine group reported a net profit of US$465 million, results the management attributed to a strong impact by non-recurring items.
In 2022, the winemaker acquired 100 percent of the shares and voting power in Vinklubben I Norden AB (formerly Mytaste Food & Beverage AB).
With this acquisition, Viva Wine Group reinforced its relationship with Swedish consumers and continued its strategy of strengthening the Company’s growth with strategically important acquisitions.
