Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
03.13.2013  
 

California Cash Flows Into Northwest

Jackson Family Wines expected to purchase 1,100-plus acres in Willamette Valley

 
by Peter Mitham
 
 
    UPDATE
     

     
    Jackson Family Wines announced the Willamette Valley purchase March 15.
Salem, Ore.—While foreign investment pours into California’s wine industry (see “Wine Investors Think Globally”), California cash is bound for the Pacific Northwest.

Sonoma County’s Jackson Family Wines is declining to comment, but reports indicate that the company has gone firm on the purchase of more than 1,100 acres west of Salem in Oregon’s Willamette Valley from institutional investment firm Commonfund of Wilton, Conn. The purchase has yet to close.

The development follows a second investment by San Francisco-based Bacchus Capital Management LLC in Joe Dobbes’ venture Wine by Joe. Bacchus’ investment, announced last month, follows an initial deal between Dobbes and Bacchus in September 2011 (see “Wineries Win Financing for Upgrades”). While the value of neither investment have been disclosed, the initial investment allowed Dobbes to upgrade production equipment while the latest will, among other things, facilitate hiring of executive expertise.

Meanwhile, Napa’s Cakebread Cellars recently launched its Walla Walla AVA-based Mullan Road brand, and as Wines & Vines reported last month, the new Elkton Oregon AVA in Oregon is attracting interest in local properties from the likes of Frank Laurie Woods’ family, a former owner of Freemark Abbey in Napa (see “AVA Boosts Profile for Southern Oregon”).

The activity follows on last year’s purchase by E. & J. Gallo of Ascentia Wine Estates’ Columbia Valley and Covey Run brands in Washington state.

The spate of deals is driven by affordable assets and the long-term potential of the properties, said Mario Zepponi, a partner at Santa Rosa, Calif.-based Zepponi & Co., which deals exclusively in wine industry mergers and acquisitions.

“You’re going to continue to see that because the Pacific Northwest is somewhat of the low-water mark in the wine industry, at least in the Western region,” he told Wines & Vines. “You’re going to see a lot of these bigger wine companies taking a more critical eye to investment opportunities up in that area.…On a dollar basis, when you measure it against what you can do in California, it looks like a great opportunity.”

The rising prominence of specific grape varieties in each region—Pinot Noir in Oregon being the obvious example, as well as Cabernet Sauvignon and Riesling in Washington state—and steadily expanding acreage is also driving interest.

Washington state grape production in 2012 was 182,000 tons, up from 145,000 tons in 2008; in Oregon, the 2012 harvest topped 42,000 tons, up from 34,700 tons in 2008.

Moreover, the fruit is proving itself to be of high quality, and California companies see an opportunity to tap the supply to enter new markets.

This should be welcome news to the local industry, because the larger companies often have a reach that the smaller local players do not, opening doors to greater prominence and distribution opportunities for local wine.

“There’s not a lot of real big horses in those markets. So the ones that are going to be able to come in and change the market are the outsiders,” Zepponi said. “They’re big enough that they could come in and make use of all that fruit.”

 

SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS 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  
October 2014 $570 million
6%
$7,775 million
6%
October 2013 $539 million $7,342 million
     
Direct-to-Consumer Shipments » Month   12 Months  
October 2014 $284 million
18%
$1,751 million
13%
October 2013 $240 million $1,556 million
     
Winery Job Index » Month   12 Months  
October 2014 139
6%
226
18%
October 2013 131 192
     
 
MORE » Released on 11.13.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • December 2-4
     
    Vinitech Sifel in Bordeaux
     
  • December 3
     
    Sustainable/Organic Wine Production Seminar
     
  • December 4
     
    North Coast Wine Industry Expo
     
  • December 6-7
     
    Wine Chemistry Workshop in Oregon
     
  • MORE »
 

READER COMMENTS
 
Article: Kluge Saga Continues in Virginia »
 
Not everybody likes Pat Kluge, but she and Moses built a first class winery /...
Reader: Josh Moser
 
Article: Canada Adapts to Kegged Wines »
 
I am a wine agent in Manitoba & there certainly are kegs of cider here....
Reader: Guest
 
Article: What's Your Winery's IP Worth? »
 
If you would like more information on this seminar please visit The Seminar Group's website....
Reader: Danielle Bingham
 
Article: DtC Is Lifeblood of Wineries, Banker Says »
 
Seems like another locical option would be to have more small niche distrbutors. Consolidation of...
Reader: Guest
 
Article: Tasting Wine From PD-Resistant Grapes »
 
Congratulations Andy! Lots of grapebreeders and southern growers will be looking through the catalogs. i...
Reader: Guest
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
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
 Cellar Club Coordinato...
 Dundee, OR
DTC, Tasting Room and Retai
 Customer Service & Rel...
 Healdsburg, CA
DTC, Tasting Room and Retai
 Brand Manager
 Woodland Hills, CA
Sales and Marketing
 Senior Vineyard Manage...
 Rutherford, CA
Vineyards
 Brand Director, Austra...
 Napa, CA
Sales and Marketing
 Sales Representative O...
 Sacramento, CA
Sales and Marketing
 Production Forklift Op...
 Yountville, CA
Winemaking and Production
 Project Manager
 Santa Maria, CA
Sales and Marketing
 Wine Salesperon
 Bay Head, NJ
Sales and Marketing
 Communications Special...
 St. Helena, CA
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 © 2001-2014 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.