Scheid Family Wines Announces Sale of Three Vineyard Properties

Rhea-AI Summary

Scheid Vineyards (OTC: SVIN) announced the sale of three vineyard parcels for $33 million, which includes $20 million of debt assumed by the buyer. The transaction, involving 1,193 acres of vineyards, aligns with the company's strategy to optimize asset holdings and debt in support of its premium wine business. CEO Scott Scheid emphasized the focus on expanding their branded goods portfolio, including the new product, Sunny with a Chance of Flowers. This strategic move is aimed at strengthening operational efficiency and enhancing growth potential.

Positive

• Sale of vineyard parcels for $33 million strengthens asset management.
• Reduction of $20 million debt improves financial standing.
• Focus on expanding branded goods portfolio with new product launch.

Negative

• None.

SALINAS, Calif., April 2, 2021 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today that it sold three of its vineyard parcels for $33,000,000 in consideration, which includes the buyer assuming $20,000,000 of the Company's debt that was secured by the properties.  The disposition of these parcels, which comprise 1,193 acres of leased and owned vineyards, is part of Scheid Family Wines' overall strategy to better align its asset holdings and debt with its growing premium bottled wine business.

Mr. Scott Scheid, President and CEO of the Company, stated, "We are pleased to complete this transaction and continue to focus our attention and resources on the growth of our branded goods portfolio, which includes our recently launched entrant in the trending 'better for you' category, Sunny with a Chance of Flowers, as well as other national and global brands."

About Scheid Family Wines

Scheid Family Wines is a family-owned and operated, estate-driven wine company founded in 1972. Based in Monterey County, California, Scheid is uniquely integrated to bring high quality estate grown wines to the marketplace from its sustainably certified vineyards and innovative luxury level winery. Scheid's winery and bottling operations are powered by 100% renewable wind energy generated by a 400-foot tall wind turbine, which also supplies energy to many homes in the local community. The Scheid Family Wines globally distributed portfolio includes Scheid Vineyards, Sunny with a Chance of Flowers, District 7, Ryder Estate, Metz Road, VDR, and Stokes' Ghost. Scheid Family Wines also produces many regionally distributed brands for specific clients and distributors.

Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.

CONTACT:	Scott Scheid, President and CEO
	Mike Thomsen, Chief Financial Officer
	(831) 455-9990

 

View original content:http://www.prnewswire.com/news-releases/scheid-family-wines-announces-sale-of-three-vineyard-properties-301261167.html

SOURCE Scheid Family Wines

FAQ

What is the latest news from Scheid Vineyards (SVIN)?

Scheid Vineyards announced the sale of three vineyard parcels for $33 million, which enhances its asset alignment strategy.

How much debt did the buyer assume in the Scheid Vineyards sale?

The buyer assumed $20 million of debt secured by the properties in the sale.

What is the impact of the vineyard sale on Scheid Vineyards (SVIN)?

The sale allows Scheid Vineyards to streamline operations and focus resources on its premium wine business.

What strategies is Scheid Vineyards (SVIN) pursuing for growth?

Scheid Vineyards is focusing on expanding its branded goods portfolio, including new product launches in the premium segment.