Beringer Blass Executive Summary

The Globalization of Beringer Blass Wine Estates

Executive Summary The management of Beringer Blass is working to build a strong global presence for their company. Beringer Blass has successfully opened offices in the three key world wine markets - North America, Asia Pacific, and United Kingdom/Europe – and has established distribution networks in the United States, Asia, Europe, and Australia. Beringer Blass’s global expansion is challenged, however, by its lack of products in its wine portfolio; specifically products marketed to Europe.

Beringer Blass is experiencing increased competition in the premium and ultra premium wine business due to the execution of acquisitions and partnerships by large conglomerates. Beringer Blass’s experience, brand recognition, and access to global distribution networks are some of its greatest strengths, and should be utilized in its global expansion.

Alternative solutions for Beringer Blass’s lack of products in its wine portfolio include acquiring an existing company, organically developing new brands, and forming a strategic alliance with an existing company. All of the alternatives suggested would succeed in increasing Beringer Blass’s European presence if successfully executed, but each comes with its own timeline and
The acquisition solution allows for instant access to additional brands once the acquisition is complete; the acquisition process, however, can require a substantial amount of time to complete and require a substantial monetary investment up front. The implementation of this alternative would involve identifying a company that has a strong European presence and initiating acquisition talks. Beringer Blass could potentially finance the acquisition of a wine company by a common stock offering, which could also increase the amount of time necessary to complete the