After 131 years growers sell majority shares of Carmel WineryIn 1882 Baron Edmond de Rothschild, owner of Chateau Lafitte of Bordeaux, founded a winery in the land of Israel, which was at that period under Ottoman rule. The Baron wished to revive winemaking in the land of the bible after 700 years, and at the same time, to provide work for the struggling settlers in a barren and disease struck country. The beginning was troublesome, when a short period after planting the first vines, they were infected by Phylloxera. However, the baron, his clerks and the settlers proceeded stubbornly, and success finally came, when in the World Fair of 1900, a "Carmel Mizrahi" ("Carmel Oriental" as the winery was then named) wine, won a reward and many appreciations.In the dawn of the new century, in the year of 1906, the Baron decided, due to financial considerations, to transfer the ownership of the winery to the growers, for a symbolic price. From then on, and until February 20th 2013, 131 years after its foundation, the winery which developed to be Israel's largest winery, and at periods one of the world's largest - production wise, remained in control of the Grower's Association. Carmel Wineries grew to be a mega winery, producing more than 20 million bottles a year at the turning point of the 21th century, some 60% percent of the local wine production, after holding close to 90% of the market (!) during the eighties.However, mass production, alongside growing competition from new and quality driven wineries in a growing wine industry, and a problematic market unable to increase local wine consumption, lead to financial difficulties, and Israel's leading winery was in need of more and more credit from local banks. 2005 was another turning point, when the faltering giant decided to cut production volumes, and to steadily raise the quality of its wines, planting vineyards in new and innovative areas and investing millions in modern equipment and new production sites. Today, with about 15 million bottles, "Carmel" is still the largest winery in Israel, producing approximately 30% of the local wine production, with properties in each and every wine producing region of the country.From 1906 to this very day, hundreds of growers, by means of their association - Agudat Hacormim – SCV des Grandes Caves, remained the joint majority shareholders of the winery. However, two main factors led the growers to put the majority of shares on sale, in fact forfeiting ownership of "Carmel". One of the factors was pressure from the banks, craving to reduce the volume of debit, and the other factor, was the shareholders themselves, many of them elderly people, with offspring not so keen to continue working the vineyards, wishing to realize their shares. Thus, the bidding procedure commenced a few months ago, and ended as mentioned on February 20th.A month before the crucial shareholders meeting, the directors decided on the winning consortium of bidders, between a few groups who proposed their bids. It was the proposal of the "Kedma Capital" group, which was based on a winery value of 130-140 million IS (some 33-35 million US$), that was brought before the shareholders. The "Kedma" consortium consists of some very well established businessmen, headed by Israeli Benjamin Yeselzon, un ultraorthodox tycoon placed in the 44th place of the top 500 Forbe's list of Israeli rich, American Jay Shottenstein (owner of American Eagle), Englishman Leo Noye and Frenchman Pierre Besnainou, (owner of Fauchon). Gilad Halevy of Kedma will be appointed as the new chairman of Carmel Winery, replacing former and much appreciated chairman Israel Ivzan, who passed away just a week ago.The new owners to be, have of course undertaken to further develop the winery, pledging to increase sales by 30% through the next 4 years. It is although widely agreed between members of the trade in Israel, that a significant part of the winery's real estate holdings, especially those based in the city of Rishon Le Zion nearby Tel Aviv - Israel's financial capital, will be promptly sold for housing projects, at great profit . One of the historic production sites is placed in Rishon Le Zion, these days used mainly as a museum, and although the main building is intended for conservation, there is still much land around it to be realized. The deal itself has not yet been signed, and is intended to be concluded during the next few weeks, if no difficulties arise.
