Federico Paternina S.A. - Introduction

Introduction

Avda Santo Domingo 11, Apartado
Haro La Rioja
E-26200
Spain
Telephone: +34 941 31 05 50
Fax: 34 941 31 27 78
Web site: http://www.paternina.com

Public Company
Incorporated: 1896
Employees: 93
Sales: EUR 40 million ($45.9 million) (2003)
Stock Exchanges: Bolsa de Madrid
Ticker Symbol: PAT
NAIC: 312130 Wineries; 311423 Dried and Dehydrated Food Manufacturing; 424490 Other Grocery and Related Product Merchant Wholesalers; 424820 Wine and Distilled Alcoholic Beverage Merchant Wholesalers

Federico Paternina S.A. is one of Spain's leading Riojaregion wine producers. The Haro La Rioja-based company produces Rioja wines, including the Banda Oro, Reserva, and Gran Reserva labels and the flagship brandy, Conde de los Andes Solera Gran Reserva. Paternina is also present in Spain's two other principal wine appellations, producing Ribera del Duero wines and Jerez (sherry) brandy, including its flagship brandy. The company also produces and markets a range of spirits and liqueurs, including the Otaola brand line. Paternina operates several wineries, the oldest of which is the Conde de los Andes located at Ollauri, which features four 16th-century wine cellars with a total capacity of four million bottles. Paternina operates more modern facilities at Haro, where the company has built one of Europe's largest wine and brandy production and aging facilities, covering an area of 87,000 square meters; the El Cuadro bodega (winery) in Jerez, producing wines and brandies; and the company's most recent winery, Marques de Valparaiso, producing Ribera del Duero wines. While sourcing grapes from the region's farmers, Paternina also has acquired its own vineyards, including 41 hectares in Pesquera de Duero. The company expects to expand its holdings to more than 100 hectares, in order to become self-sufficient and ensure the quality of its wines. Paternina is one of the only Spanish wine producers listed on the stock market; 80 percent of the company remains controlled by the Eguizábal family, which acquired Paternina in the early 1980s and is credited with reviving the reputation of not only the winery, but also the Rioja appellation itself. In 2003, Paternina's revenues reached EUR 40 million ($45 million).