We are very excited to announce Diamond Estates’ recent acquisition of Backyard Vineyards Inc. (Backyard) of Langley, British Columbia!
This highly strategic transaction transforms Diamond Estates into a national producer of VQA wines and positions the Company to build a major new winery in the internationally-recognized Okanagan Valley wine-producing region.
Backyard owns a 10,000 square-foot winery, retail store and warehouse in Langley, which has operated for 15 years and won countless awards. The facility is approximately 50% utilized at present, giving Diamond Estates the ability to launch its own brands in the market without a material infrastructure expansion. In addition, Diamond Estates and Azura Management Corp. plan to co-develop 180 acres of land on the Naramata Bench, located in the southern portion of the Okanagan Valley. The property is in close proximity to other high-quality wineries and the Company is confident it can develop the site into an attractive tourist destination that produces outstanding VQA wines.
The Backyard Vineyards acquisition represents a significant opportunity for Diamond Estates. It will allow the Company to introduce its existing brands into British Columbia and Alberta, Canada’s third and fourth largest wine markets. By becoming a truly national producer for the first time, Diamond Estates is positioned to pursue sales opportunities with national chain restaurant companies, airlines, and railways that sell very large volumes of wine across the country. This has the potential to increase the Company’s brand exposure significantly.
“For a long time, one of our central goals at Diamond Estates has been to transition the Company from a regional VQA producer into a national VQA producer that can pursue national business opportunities. This transaction does just that,” said Murray Souter, President and CEO. “We now have a platform for significant growth in British Columbia, Canada’s most highly developed VQA market. The Backyard winery is a small but outstanding asset with the potential to increase capacity and boost sales both within the province of British Columbia and in other jurisdictions and channels.”