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Napa,Wine,Wine Business,Wine Culture

Normal Winery Merger and Acquisition Market in This Last Quarter of 2019

I don’t usually report on real estate in the wine industry. I’ve just watched – for nearly 30 years – so many wineries changing hands, fading into the sunset, changing the name due to notoriety, the failings of venture capitalism, no legacy planning, etc.. It really is the game of Monopoly, with each county having it’s own board: Baltic Avenue to Boardwalk, railroads, utilities; “Get Out of Jail Free” cards, along with “Go Directly to Jail, Do Not Pass Go, Do Not Collect $200.”

[PHOTO: Jo Diaz. A view at Chateau Nervers, Brouilly, France]

When I worked with Concannon Vineyard, which had changed hands, again, to The Wine Group, I told them that at that time, it was critical to keep a family member on the premises. Jim Concannon was nearing retirement, and I suggested John was a great candidate. Now that this winery is on the marketing, again, will that consideration persist? I hope so, so long as there is a family member close by who wants the ambassador role. But, that is up to the new buyer.

The US doesn’t have the European roots, where a family members can trace themselves back to the fifteenth century, much less two or three hundred years – as in a few US  properties. Still, some great brands have been created here and have great worldwide cache.

[PHOTO: Jo Diaz. A view of Napa Valley from Ragusci Winery, Stags Leap District]

On the other hand, this is just evolution. My advice to anyone buying a winery, make sure either you or a close family member has a degree in finance, because, as the saying goes, “It takes a large fortune to make small fortune in the wine industry.” Another thought, also make sure someone in the family loves to get her or his hands dirty, and there’s another scientist… if you’d like your winery to stay within your family. This gives you more chance to have your passion of owning a winery survive all the tests of time. Simply being a bon vivant, with a trophy winery, doesn’t guarantee any legacy. Then there are those who have a 10 year plan, live it out, and list it. In the end, there will be a for sale sign, which doesn’t garner legacy prices.

Lecture over ~ Getting onto what’s for sale, via an Email sent to me, by global wine partners.

[PHOTO: Purchased ~ Copyright, Dinis Tolipov]

Global Wine Partners

For over 30 years, Global Wine Partners has been advising winery owners in the sale of their properties and brands.  With this perspective, we can say that notwithstanding the many headwinds in the wine industry, there is still a normal winery Merger and Acquisition market in this last quarter of 2019.

It is clear that the stalled Gallo/Constellation deal has caused increased market uncertainty, and that in turn has led some active acquirers to stand by pending its resolution. Still, overall buyers are looking at deals and offers are being made.

If you are a potential buyer, please see the opportunities outlined below.  These are just a few of the many projects we are working on.  Contact us, 707.967.5318.

If you’re a potential seller, we we’d be happy to talk with you about the current market, for wineries in general and for your business, in particular.

  • Legacy Santa Barbara estate winery
    • This 107-acre estate winery in the heart of Santa Ynez’s wine country sells 6,000 cases of Bordeaux-varietal wines at good price points.
    • It has a robust DTC business, and is growing its wholesale market.
    • Seller will consider real estate-only offers.
    • Growing 100,000-case Chardonnay Brand,  this brand is California-appellated, selling at a $14.99 Suggested Retail Price, yielding very high gross margins.
    • Broad national distribution and chain authorizations are driving growth.
  • Dry Creek Valley Sonoma estate winery
    • Tucked under the western hills, this 100-acre estate has varying topography creating a myriad of terroirs.
    • The winery is permitted for 25,000-case production.

For further information on the opportunity, click here to email Carol Collison, or call 707.967.5318

Additional Services ~ Valuation, Litigation & Finance

GWP provides a wide range of strategic & financial services to the wine industry based on decades of experience in consulting, accounting, and banking. We provide buy-side advice to new and established investors in wineries & vineyards.

This is information from an Email. This is not an advertisement.

And… Special thank you to Wine Business for publishing “Normal Winery Merger and Acquisition Market in This Last Quarter of 2019” from Wine-blog.

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