Vintage Wine Estates Buys Napa's Swanson Vineyards

Sonoma firm purchases winery known for Merlot; CEO sees a buyer's market

Tim Fish

Sep 2, 2015

Vintage Wine Estates has continued a recent winery-buying spree, announcing its purchase of Napa Valley's Swanson Vineyards, a pioneer in California Merlot, this morning. The deal, which closed Aug. 31, comes just a month after the Sonoma-based company purchased B.R. Cohn Winery. The sale includes the brand, the winery and tasting room, inventory and a small vineyard parcel. The purchase price was not disclosed.

Clarke Swanson, who founded the winery in 1985, retains ownership of his 100-acre Oakville vineyard, but will continue selling grapes to Vintage Wine Estates for now. The 76-year-old vintner told Wine Spectator he initiated the sale as part of his estate planning. "It was just a matter of finding the right steward for the winery," said Swanson, whose family launched the Swanson frozen foods business. "[Vintage is] in a position to grow it more vigorously than we could have."

With an annual production of about 20,000 cases, the winery produces Merlot, Cabernet Sauvignon, Sangiovese, Zinfandel, Pinot Grigio and Chardonnay, as well as three well-regarded sweet wines. Its vineyard neighbors include Opus One and Silver Oak. Winemakers Chris Phelps and Robin Akhurst will continue in their roles.

"We don't have a Merlot [in our portfolio] per se and that is one of Swanson's strengths," said Vintage CEO Pat Roney. "Swanson has a well-established reputation as an iconic Napa winery, and we think it has an opportunity to continue to grow."

Vintage Wine Estates has been snatching up wineries in transition in recent years. The company purchased California négociant Cartlidge & Browne and Napa's Valley's bankrupt Cosentino Winery in 2011, as well as Clos Pegase in Calistoga and Viansa in Sonoma Valley in 2013. B.R. Cohn was on the market for about four years before owner Bruce Cohn made a deal to sell to Vintage. Cohn told Wine Spectator in July that his creditors pushed him to sell.

"Each property is unique," said Roney. "We want to keep the family-association to the wineries in place and put our financial strength behind them." Leslie Rudd, owner of gourmet grocery chain Dean & DeLuca and Rudd Winery in Napa Valley, is a key investor in Vintage.

Many industry observers predicted a wave of sales once the economy recovered from the 2008 recession, and Roney conceded there are still many wineries on the market. "I fully expect this trend to continue over the next five to 10 years."