Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
 
January 2014 Issue of Wines & Vines
 
SUBSCRIBE   »
 

Duckhorn Deal Ends Year of Northwest Investment

 
by Peter Mitham
 
 
Benton City, Wash.—When the Aquilini Investment Group of British Columbia on Nov. 23 bid $8.8 million (including buyer’s premium) for 670 acres that the Kennewick Irrigation District was offering in the high-priced grape-growing district of Red Mountain, tongues started wagging.

Aside from a dairy farm at Sunnyside, Wash., the Aquilini company’s activities were little known to the 38 other parties vying for a slice of one of Washington state’s most desired viticultural areas. But with a stated commitment to developing vineyards, Aquilini is keeping its neighbors watching to see what comes next. And according to industry observers, that may be more of the outside investment the region has seen in recent years.

Mario Zepponi, a partner at Santa Rosa, Calif.-based Zepponi & Co., contends that Washington state makes wines to rival those of California, but the economics of vineyard establishment and production are often more attractive than in Sonoma, Napa and California’s Central Coast.

He points to Long Island, N.Y.-based Banfi Vintners’ purchase of Pacific Rim Winemakers in 2010 as an acquisition that gave an outside winery a significant producer in a relatively low-cost region. Similarly, Duckhorn Vineyards has announced a new Washington state label, Canvasback, focusing on Cabernet Sauvignon—one of the grapes that built its reputation in California, but at a discount from California.

But if Banfi bought a winery—as Precept Wine Brands did with Waterbrook Winery in 2006 and Canoe Ridge Vineyards and Sageland Vineyards in 2011, and E. & J. Gallo with the purchase of Columbia Valley and Covey Run in 2012—transactions this year have focused on vineyard purchases.

Zepponi expects these to become more common. “It’s easier for a lot of outsiders to purchase vineyards and experiment with branding and wine quality,” he told Wines & Vines.

This is what makes the new Duckhorn label different from many other ventures. The label has been launched without a physical site (the initial vintages are being produced at Artifex in Walla Walla, Wash.), and a winery on a 20-acre site Duckhorn acquired in December remains “dreams, not plans,” according to Duckhorn president and CEO Alex Ryan.

Jackson Family Wines purchased 1,369 acres west of Salem, Ore., in the Eola-Amity Hills and Yamhill-Carlton AVAs, while Seattle-based Precept acquired the 374-acre Yamhela property, also in the Yamhill-Carlton AVA.

Precept also acquired a 174-acre vineyard in the Yakima Valley, south of Red Mountain, with grapes supplying its existing program.

 
SHARE   »
Print this page   PRINTER-FRIENDLY VERSION   »
E-mail this article   E-MAIL THIS ARTICLE   »
Close
 
Currently no comments posted for this article.
 
CURRENT MONTH'S FEATURES INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
June 2015 $602 million
5%
$8,101 million
6%
June 2014 $571 million $7,676 million
     
Direct-to-Consumer Shipments » Month   12 Months  
June 2015 $92 million
6%
$1,901 million
14%
June 2014 $87 million $1,669 million
     
Winery Job Index » Month   12 Months  
June 2015 366
22%
261
19%
June 2014 300 220
     
 
MORE » Released on 07.15.2015

 

Direct To Consumer
Wine Shipping Report
2015
 
Download full report »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

CALENDAR
  • August 7
     
    International Cold Climate Wine Competition
     
  • August 8
     
    Wind to Wine Festival
     
  • August 15
     
    ZAP Simply Summer Celebration
     
  • August 16
     
    Family Winemakers Trade Tasting
     
  • MORE »
 

READER COMMENTS
 
Article: The Spiciest Wines You Have Ever Tasted »
 
There are some wines from New Mexico are infused with pepper flavors. Also, The Wine...
Reader: Guest
 
Article: Does Red Blotch Affect Wine? »
 
I have a grapevine in my polytunnel in east London which is showing signs of...
Reader: Guest
 
Article: Central Coast Wine Harvest Begins »
 
Here at Flying Goat Cellars in Lompoc we harvested last week the Bien Nacido Pinot...
Reader: Guest
 
Article: The Spiciest Wines You Have Ever Tasted »
 
I'm curious as to how 'guest' defines wine and their rational for claiming this is...
Reader: Rob McDonald
 
Article: The Spiciest Wines You Have Ever Tasted »
 
This is not wine. This is aromatized drink. Like vermouth.
Reader: Guest
 
 


2015 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
   LEARN MORE »
 
   SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Lab Tech/Qa
 Geyserville, CA
Cellar, Lab and Production
 Shipping And Sales Ass...
 St. Helena, CA
Sales and Marketing
 Harvest/Cellar Staff
 Richland, WA
Cellar, Lab and Production
 Cellar Worker Ii
 Yountville, CA
Cellar, Lab and Production
 Sales Consultant/Marti...
 Hartford, CT
Sales and Marketing
 Part-Time Wine Educato...
 Healdsburg, CA
DTC, Tasting Room and Retai
 Tasting Room Manager
 Sherwood, OR
DTC, Tasting Room and Retai
 Program Coordinator
 Napa, CA
General Administration and
 Director, Direct To Co...
 Rutherford, CA
DTC, Tasting Room and Retai
 Distributor Manager, O...
 Cincinnati, OH
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2015 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.