Wine Group (“TWG”) said 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 category. Terms weren’t disclosed.
The exclusive deal includes the rights to represent Rancho La Gloria agave-based wine products in the U.S. 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% annually[3].
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/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.”