Sherpa Capital buys winery of suspected DO wine fraud

BarcelonaThe investment fund Sherpa Capital has bought the production unit of Reserva de la Tierra, the company that is immersed in a judicial process for the alleged fraud with the wine, which would have passed off as if it were a designation of origin without being -ho, and in which five Catalan DOs have been affected. Sherpa Capital thus enters the wine sector for the first time and, through a press release, details that it seeks to “promote and consolidate the middle segment of Spanish wine” intended for supermarkets and export, the same focus that Reserva had de la Tierra with the wine it sold.

The operation was advised by Cuatrecasas and became effective after Sherpa Capital presented the best offer for Reserva de la Tierra, which was in bankruptcy. Sherpa Capital sources consulted by the ARA have stated that they will respect the decisions made by the judge linked to the alleged fraud, although they have specified that “Sherpa Capital does not have and will not have any kind of relationship with this judicial process”, given that it has bought the facilities, such as wine making or bottling facilities, and not the company itself. “The legal problems that this firm may have [Reserva de la Tierra] prior to our acquisition are something alien to Sherpa Capital,” they said.

According to the investment fund, Reserva de la Tierra’s assets “have a solid foundation and significant growth potential.” That’s why he hopes to take advantage of the company’s value by strengthening the team – he wants to keep a large number of the jobs from the previous stage – and the “maximization of all the opportunities offered by the business model” of Reserva of the Earth In a first phase, Sherpa Capital plans to focus on the recovery of Reserva de la Tierra figures and its growth in strategic markets (Spain, the United States and China).

Among Sherpa Capital’s plans is to once again produce wine with Catalan designations of origin, as well as to create a business platform capable of meeting the needs of large supermarkets. The fund recalls that the atomization of the Spanish wine sector causes supermarkets “to have problems finding single suppliers who are able to satisfy a high demand for the different Spanish varieties and denominations of origin with the necessary quality”. He adds that Spanish wine is expanding in the international market, a context that “offers great opportunities”.

For its part, Reserva de la Tierra has declined to make statements. Meanwhile, the judicial process is moving forward. The court of inquiry number 3 of Reus (Baix Camp) has summoned to testify on September 21 and 22 six managers of this company investigated for the alleged fraud, which affects the designations of origin Terra Alta, Tarragona, Catalonia, Montsant and DOQ Priorat.

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