Australia's foremost wine packager Vinpac International and premium cork specialist V&L Australia Pty Ltd (VLA) have come together in a unique deal that is believed to be one of the largest in the cork industry worldwide.

The groundbreaking agreement, signed in Adelaide last week, will give Australia’s leading wine bottlers Vinpac International the exclusive rights to VLA Corks, the best natural wine corks available in the nation.

It is expected that well in excess of 100 million VLA Corks will be supplied in the first year for domestic and export bottlings of Australian wine, with a retail value of approximately $A1.2 billion.

Signing the agreement, Vinpac International’s General Manager Reuben Summerell said; “To be a world benchmark bottling company also entails being a supplier of world class packaging materials. We consider VLA to be an industry leader in terms of cork quality and performance. Over the past two decades Australia has proven itself internationally in terms of wine quality and value for money. It’s now up to companies like Vinpac International to consolidate the Australian industry’s success by becoming the world’s best wine bottlers to match the success of our wine producers.”

Vinpac International, a subsidiary of Fosters Group Limited, and VLA, a subsidiary of Vasconcelos and Lyncke Portugal, have similar backgrounds in terms of culture, with a strong focus on quality-driven, long term customer partnerships. Both are entering their second decade of servicing the Australian wine industry with nationally and internationally renowned resources and expertise. As a result, both companies have a proven track record of meeting customer needs through innovation, a focus on quality and by consistently improving their products.

The decision to merge operations is the culmination of a process that began around four years ago. As Vinpac’s Cork Sales and Operations Manager Luke South, puts it, “Vinpac International's review of operations and market conditions indicated VLA was strongly preferred, as its culture and product, VLA Corks, consistently met, and indeed exceeded, Vinpac’s exacting standards.”

“Further, this deal provides an exciting opportunity for us to set new benchmarks for product quality, customer service, supplier assured delivery and bottling expertise. The merger in operations has created important synergies and allows new economies of scale", he said.

According to Reuben Summerell the global wine market has become increasingly sophisticated, demanding quality and a level of innovation. He said, however, that tradition remains a powerful influence on image, guaranteeing natural and technical cork closures will always have a significant role.

“The recent challenges to the Cork Industry, such as synthetic and screw cap alternatives, have increased the focus on cork quality. With the renowned VLA brand and cork expertise and a team dedicated to customer service, Vinpac International is determined to make an outstanding contribution to Australia’s vinous reputation. This deal confirms our confidence in the future of the industry and in the role that top quality cork will play in the future,” he added.

To ensure a seamless transitional period and maintain the highest level of customer service, VLA staff will join the new, integrated team to operate from Vinpac International facilities as of the 1st of September 2003 and will utilise Vinpac’s distribution network for the renowned VLA Cork brand.
Lisa Roberts, VLA Business Development manager, said that Vinpac hopes to attract more producers to its exciting new team, especially with their prestige brands where VLA Corks can do their best work.