Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
05.16.2013  
 

Hot Spring for Northwest Acquisitions

Bacchus, Precept, Jackson invest in Washington and Oregon vineyards

 
by Peter Mitham
 
 
northwest vineyard purchases
 
Precept Wine Brands' acquisition of the Yamhela property is among the recent vineyard transactions in the Pacific Northwest.
Salem, Ore.—The brakes are off acquisition activity in the Pacific Northwest, which has seen its busiest season of deal-making in years as hundreds of acres of Willamette Valley vineyards have changed hands.

The latest deals saw Jackson Family Wines acquire an additional 280 acres of vines in the Eola-Amity Hills and Yamhill-Carlton AVAs and Precept Wine Brands acquire the 374-acre Yamhela property, also in the Yamhill-Carlton AVA.

The deals continue the sale of properties formerly managed by Premier Pacific Vineyards Inc. on behalf of the California Public Employees Retirement System (CalPERS), portions of which Jackson Family Wines acquired as part of a deal reached in March for more than 800 acres. Jackson Family Wines’ latest deal fulfills speculation at the time that it had gone firm on 1,100 acres of property west of Salem, Ore. (see “California Cash Flows Into Northwest”).

Precept Wine’s purchase brings its planted acreage in Oregon to 600 acres, and CEO Andrew Browne expects the next two vintages to see plantings increase by 120 acres. The purchase was driven by the proven capabilities of the site, and the fact a portion was already in production—cutting down time from development to production.

“We could have chosen to go plant, but we could have chosen to go purchase, and the economics worked out the same. Now we’re going to get grapes sooner than us going planting,” Browne told Wines & Vines.

Browne wouldn’t disclose the terms of the purchase, but the price was competitive.

“We didn’t underpay, we definitely didn’t overpay, either,” he said.

Grapes from the property, which is planted to Pinot Noir, will be channeled to Precept’s existing production as well as new brand opportunities.

Precept Wine is the largest privately owned vintner in the Pacific Northwest and has acquired several vineyards and wineries since 2010 (see “Precept Wine Buys Ste. Chapelle”).

Based in Seattle, Wash., Precept sold 950,000 cases in 2012 and hopes to break 1 million cases this year. It continues to seek growth opportunities.

“We’re still looking at vineyard opportunities in all those markets, and the same thing from a branding standpoint,” Browne said.

But it’s not the only investor in the Pacific Northwest industry.

One of the companies making major in-roads is private equity firm Bacchus Capital Management LLC, a venture of former Seagram and Diageo executive Sam Bronfman and partners Peter Kaufman and Henry Owsley of the Gordian Group.

Bacchus has made significant capital investments in Joe Dobbes’ venture Wine by Joe, and this week it announced an investment of capital to support the growth of Woodinville, Wash.-based DeLille Cellars as well as the purchase of Panther Creek Cellars of McMinnville, Oregon.

Bacchus, like Precept, is private and doesn’t disclose financial details, but the moves represent an ongoing move of California capital into the desirable Pacific Northwest market.

Greater availability of capital, supported by confidence in strengthening wine sales, are largely seen as responsible for heightened transaction volumes in the Pacific Northwest, which remains affordable relative to other premium growing areas.

“On a dollar basis, when you measure it against what you can do in California, it looks like a great opportunity,” remarked Mario Zepponi, a partner at Zepponi & Co. in Santa Rosa, Calif., when the initial deals closed in March. “Good things are yet to happen, and are coming in the Pacific Northwest.”

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  
June 2014 $562 million
5%
$7,549 million
6%
June 2013 $535 million $7,094 million
     
Direct-to-Consumer Shipments » Month   12 Months  
June 2014 $87 million
17%
$1,669 million
11%
June 2013 $74 million $1,510 million
     
Winery Job Index » Month   12 Months  
June 2014 300
34%
220
21%
June 2013 224 182
     
 
MORE » Released on 07.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Wines & Vines
Packaging Conference
 
Learn More »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • July 24
     
    Fresno Food Expo
     
  • July 24-27
     
    Taste our Terroir
     
  • July 25-27
     
    International Pinot Noir Celebration
     
  • July 26
     
    Introduction to Wine Analysis
     
  • MORE »
 

READER COMMENTS
 
Article: Wineries May Lose Internet Domain Dispute »
 
All these arguments could be levied by any industry associated with any gTLD, new or...
Reader: Doug Barnett
 
Article: Wineries May Lose Internet Domain Dispute »
 
Do brands get hijacked now? Even though .wine does not yet exist, are there false...
Reader: Larry Chandler
 
Article: Resistant Weeds Threaten Vineyards »
 
Roundup is not benign. It does not always break down in a day or two...
Reader: Robert Rex
 
Article: Resistant Weeds Threaten Vineyards »
 
Mitigating water use in the vineyard in the first place is also an applicable tactic....
Reader: Guest
 
Article: Resistant Weeds Threaten Vineyards »
 
Having managed vineyards that have used both approaches, I would say that a diverse approach...
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 »
2014 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
 Catering Assistant
 St. Helena, CA
DTC, Tasting Room and Retai
 Prepared Food Associat...
 St. Helena, CA
DTC, Tasting Room and Retai
 Barista/Espresso Bar A...
 St. Helena, CA
DTC, Tasting Room and Retai
 Harvest Intern
 Santa Rosa, CA
Winemaking and Production
 Tasting Room Superviso...
 St. Helena, CA
DTC, Tasting Room and Retai
 Ecommerce/Wine Club Ma...
 Healdsburg, CA
DTC, Tasting Room and Retai
 Assistant Winemaker
 Cazadero, CA
Winemaking and Production
 Customer Service/Wine ...
 Napa, CA
Sales and Marketing
 Winery And Facilities ...
 Napa, CA
Winemaking and Production
 Wine Club Assistant
 Lompoc, CA
DTC, Tasting Room and Retai
 
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.