In December 2001, Watson's wine business expanded into Europe through the acquisition of Swiss-based wine wholesaler/distributor Cantine e Distillerie Badaracco SA, which specialises in trading prestigious international wines.

From humble beginnings as a food, wine and liquor store in Lugano in 1879, Badaracco today is the largest company of its kind in the world with a balanced range of European, South American and New World vintages.

The tight-knit operation serves a niche market with prestigious and rare wines, boasting a global client base of more than 5,000 primarily importers and wholesalers. No other company can come close to Badaracco's offerings, which include 14,000 wine sources and a 900,000-bottle collection that spans hundreds of yearsand features vintages dating back to the 18th century.

Badaracco invests extensive research into each wine-maker and region in order to buy the best wines in the right quantities. Intensive quality control ensures that wines are aged and matured to perfection.

As part of its quest to remain unique, Badaracco is the first company in the world to sell wine in large 12-litre, 15-litre and 18-litre bottles, which have proved a huge success.

Badaracco's focused strategy has been very successful in Europe, the world's biggest market whose maturity has brought stable demand coupled with a move to finer vintages. The burgeoning Asian market offers plenty of potential for growth, with average consumption in Japan at 2.5 litres per person per year, against a 40-50-litre average in Europe. By becoming part of the A.S. Watson group, Badaracco enjoys additional resources and synergies with the added global reach to expand.