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From: lewis.perdue@wineindustryinsight.com

Subject: Copia Appraisal Shows Huge Challenge, Fred Franzia Profiled by New Yorker

Date: 2009-05-11 16:03:11

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WINE INDUSTRY INSIGHT

EMAIL EDITION - VOLUME I, NUMBER 86 - May 11, 2009

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THIS ISSUE SPONSORED BY:

Hinman & Carmichael     Miramont Estate: Put our prize-winning wine in your bottles

INSIDE THIS ISSUE:

  • Copia Appraisal Reveals Drop In Value, Big Challenges For Potential Buyers

  • Fred Franzia, Two Buck Chuck Profiled By New Yorker Magazine



WINE INDUSTRY INSIGHT ORIGINAL REPORTING

Copia Appraisal Reveals Drop In Value, Big Challenges For Potential Buyers

Flooding, high maintenance costs, awkwardly configured spaces and unfavorable ground-lease terms will aggravate the challenges of the current recession for any potential buyer of the bankrupt Copia assets according to the full version of a current appraisal recently made part of the court records.

Because of the intensive research, analysis of compArable land and building valuses, as well as economic and financial conditions, this appraisal report has broad significance beyond the specific  Copia data.

(Please note the link above is to the full appraisal, a 13.7 MB .pdf and is accessible by VIP subscribers. Subscription information is here. The appraisal is also divided into 10 parts for easier download. Those can be located by browsing the DataCellar.)

$30M AUGUST PURCHASE OFFER SPURNED, TOTAL VALUE NOW LESS THAN $25M

Two potential purchasers dodged a multi-million-dollar financial bullet when Copia turned down their offers in August and November 2008.

copia-appraised-value

According to the appraisal by respected commercial appraisal firm Hulberg & Associates, the total value of the property and buildings is $24,860,000 as of March 31. That is down from $28,670,000 on Dec. 1, 2008 and substantially lower than the rejected offers.

Also in this 1,058-word article:

  • THE REJECTED $30 MILLION OFFER: HOTEL, CONDOS, RESTAURANT & RETAIL
  • THE REJECTED $28 MILLION OFFER: REIT HAS CASH, WILL SPEND
  • CONTINUING TO DODGE THE BULLET DOWN TO THE BOTTOM
  • COUNT ON PRIVATE CAPITAL, NOT BANKS
  • GROUND LEASE ON OXBOW “WELL BELOW MARKET”
  • FLOOD ISSUES WITH EXCESS LAND

VIP Subscribers click here to read the rest of the article.

Not a subscriber? Subscribe now, and get the rest of this 1,058-word original article along with the legal filings and everything else on the site every day, including the Data Cellar for just $9.99 per month or $115.88 per year. Click here for more details.


Fred Franzia, Two Buck Chuck Profiled By New Yorker Magazine

Fred Franzia is the subject of a profile in the May 18 issue of  New Yorker Magazine.

The following summary is from the New Yorker.

Fred Franzia owns forty thousand acres of vineyards, more than anyone in the country; crushes three hundred and fifty thousand tons of grapes a year; and his company, Bronco, has annual revenue of more than five hundred million dollars.

Recently, Franzia celebrated the sale of the four-hundred-millionth bottle of Charles Shaw, known as Two Buck Chuck, which is sold for $1.99 at Trader Joe’s. Franzia’s objective is to sell as much wine as possible—he sells twenty million cases a year now, making Bronco the fourth-largest winery in the U.S., and would like to reach a hundred million.

He believes that no bottle of wine should cost more than ten dollars.

Franzia is sixty-five and twice divorced. He is both a major seller and a major buyer on the bulk market. He owns several wineries, including one in Sonoma, and he acts as a custom winemaker for wineries without his capacity.

In 2000, he opened a ninety-two-thousand-square-foot bottling plant near the Napa airport.

Read the rest of the abstract (all free) at Wine Industry Insight.




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Lewis Perdue
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Phone: 707-326-4503, fax: 707-940-4146
Email: lewis.perdue@wineindustryinsight.com