The Country Vintner
The Country Vintner (“TCV”) is the second largest distributor of fine wines in the United States and the market leader in the Mid-Atlantic franchise states. TCV’s business model focuses on providing on-premise retailers (“white tablecloth” restaurants), off-premise retailers, and major retailers with a diverse mix of more than 500 wine labels from around the world.
PORTFOLIO STORY
How We Partnered
Transaction Dynamics
A partnership with management to acquire the company from a family owner. Price was pre-negotiated between the CEO and the original founder.
Investment Thesis
- Market leader in the Mid‐Atlantic franchise states
- Attractive platform for acquisitions
- Positive industry fundamentals, including growing wine consumption
- Product portfolio and consultative sales force provide sustainable competitive advantage
- Diverse customer base across multiple channels
- Regulatory environment creates strong barriers to entry
Incline Value Enhancement
- Completed three highly accretive acquisitions: the East Coast assets of Henry Wine, Stacole Fine Wines, and Carolina Wine Source
- Focused management team on optimizing delivery and warehouse operations and reducing working capital requirements by 25%+
- Eliminated unprofitable business segments
- Improved gross margins by standardizing pricing practices and implementing sales force incentives
- Improved EBITDA margin from 4.2% to 6.7%
- Reduced delivery fleet by 12 trucks while improving throughput by 20%+
HEADQUARTERS
Ashland, VA
STATUS
Realized
INDUSTRY
Industry Value-added Distribution
INVESTMENT DATE
August 2008