OENEO S.A. - Introduction

Introduction

7 rue Louis Murat
Paris F-75008
France
Telephone: +33 1 58 36 10 90
Fax: +33 1 42 25 03 41
Web site: http://www.OENEO.com

Public Company
Incorporated: 1838 as Tonnellerie Moreau
Employees: 1,576
Sales: EUR 162.7 million ($205 million) (2004)
Stock Exchanges: Euronext Paris
Ticker Symbol: SABT
NAIC: 321920 Wood Container and Pallet Manufacturing

Formerly known as Sabaté Diosos S.A., OENEO S.A. is a major player in the international wine industry. The company is the world's second largest producer of cork-based and other closure systems, and is also the world's leading producer of oak casks. Slightly more than half of the group's revenues, which amounted to nearly EUR 163 million ($205 million) in 2004, come from its oak cast operations. France represents the company's single largest market, at 35 percent of sales, while the rest of Europe adds another 36 percent to sales. North America accounts for 17 percent of group sales. In the mid-2000s, OENEO has shifted the focus of its wine closure production to emphasize its "technological" closures, and especially its patented Altec synthetic corks and the new DIAM wine closure system, introduced in 2005. As such, the company has sold off its natural cork production unit, as well as other noncore operations, such as its cork flooring subsidiary. The company also has re-centered its oak cask manufacturing business around its French production unit, shutting down its oak staves mill in Iowa. The company hopes that these measures will help it restore its profitability after several years of losses. OENEO is listed on the Euronext Paris Stock Exchange.