Former Kirkland Ranch Winery gets new life as custom-crush facility
By Jeff Quackenbush, Business Journal Staff Reporter
Lender spends ‘several hundred thousand dollars’ on vineyard, winery since early 2009
The front of Valley Gate Vineyards, formerly called Kirkland Ranch Winery. (Bin to Bottle photo)
NAPA – Kirkland Ranch Winery, ownership of which reverted to a lender in April, is being reborn this week as an all-custom winemaking facility under operating agreements with Napa firms.
Now called Valley Gate Vineyards, the 10-year-old facility closed when a buyer didn’t emerge from a number of bids in an auction in December. Colorado-based Madison Vineyard Holdings foreclosed on $21.5 million in outstanding loans to the Kirkland family business and has spent several hundred thousand dollars on the vineyards and winery to make them suitable to be able to be held for a long time or attractive to any buyers, according to Kjerstin Hatch, who oversees Valley Gate from Madison’s San Francisco office.
“We have no intention to let the vines to wither or the facility to lay underutilized,” Ms. Hatch said.
To engender confidence among custom-processing clients or potential buyers, Madison brought in Renteria Vineyard Management to revive vine yields and fruit quality and X Winery to advise on turning around the operation of the winery. X Winery has its wine made at small-lot custom winemaker Bin to Bottle, which has been brought in to operate the Valley Gate winery.
The south Napa property, located off Jameson Canyon Road near the intersection with Highway 29, includes 97 acres of vineyard and 106 plantable acres. Madison brought in Renteria Vineyard Management to boost the yield and quality from the fruit, both of which have increased dramatically from previous year, according to Ms. Hatch.
The property had suffered during several years of cash-flow issues resulting from a soured joint venture with the former owner of Viansa Winery & Italian Marketplace near Sonoma that pushed certain family businesses into bankruptcy protection, according to Ms. Hatch.
Madison acquired a $20 million loan on the Kirkland Ranch Winery property from Traveler Insurance and provided another loan when the Kirkland business emerged from bankruptcy in the second half of 2007. Part of the balance on the loans was paid from proceeds on a sale of about 2,000 acres of the originally 3,000-acre ranch in 2008 to Silverado Premium Properties.
Valley Gate Vineyards has 247,000 gallons of storage in 140 stainless-steel tanks. (Bin to Bottle photo)
The winery itself has a 57,000-square-foot winery able to crush 3,300 tons of grapes, store 247,000 gallons of wine in 140 tanks and 3,000 barrels, and bottle 500,000 cases a year. The three-story winery also has a 6,000-square-foot tasting room with a 2,000-square-foot banquet room and a permit for up to 80 events a year.
Bin to Bottle’s staff of 30, which nearly doubles at harvest, will oversee both operations, which are located a short distance apart. Bin to Bottle focuses on wines made from five to 20 tons of grapes.
Processing costs start at less than $500 a ton for large lots with a 10-ton minimum.
Madison also has applied for a distilled alcohol license to be able to offer alcohol-management services, which currently are being offered in Napa Valley mainly by mobile units. In January the facility will be available for bottling services.
“We hope this is sort of a phoenix for the valley,” Ms. Hatch said.
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Bret is the story here. If you want that feature in your wine go here. If not avoid the place. It is a breeding ground. New operation will not fix that. Who wants to risk their grapes there.
by Mark
I was extremely sad to hear of the closing. There was no notices sent to at least me as a wine club member. The family and winery was a refuge to me during a very difficult personal time and I would spend many sunday aftenoons on the viranda doing paperwork , bills or just thinking. As I break ground on my own very small vineyard project I think of Mr Kirkland his wife daughter brother and tasting room crew . I recall one day meeting a interesting woman who said she drove there from sacto for pino grigio. I thought she was crazy because at that time I was sold on their sangiovese. Now I drink white and red and realize her brilliance.I will all the best to this great family and truly appreciate their role in my recovery from a very difficult life change. All the best to the Kirklands. You are truly a classy family!!
David Wayne Smith M.D.
by David Smith M.D.
MY POP CLAY AND I HAD THE HONOR TO HAVE A PRIVATE GUIDED TOUR BY THE OWNER AT THE TIME OF OUR VISIT IN 2003.WE WERE IN CALIFORNIA AT THE TIME TO BUY AN RARE CRAWLER-TRACTOR IN THE AREA FROM TONY CARAFA,A RESIDENT THERE.WE WERE NOT ONLY IMPRESSED WITH THE BUILDINGS CRAFTSMANSHIP,BUT ALSO WITH THE OWNERS HUMBLE BUT WARM PROFESSIONAL ATTITUDE ABOUT THE BUSINESS AND LIFE IN GENERAL,I TRUELLY WISH HIM AND HIS FAMILY THE BEST IN LIFE.
by jeff king
I was sorry to hear of the closing of Kirkland Ranch. They were so welcoming to visitors. This is a tough time for wineries!
by Steve Howe
As the purveyor of the magnificent Cedar log columns in the main building, I can attest to the congenial, professional and friendly family of the Kirklands…and wish them all the best with their current endeavor.
Growing 7 acres of organic, (heading toward Biodynamic), Pinot Noir in the Willamette Valley I have experienced but a drop in the bucket of the trials and tribulations of wine grape growing…handling a 3000 acre ranch, a vineyard, winery and what else is beyond comprehension.
by Scotty
I vivited with the Kirkland and did the payroll for this winery. before all the renovations. This is one of the oldest wineries in the area…I beleive the Kirkland Family owned this property since the time of the large spanish land grants.
by marku
We lived not too far from Kirkland Ranch. I loved going there and tasting the wine and sitting on the porch looking out to Napa. I loved their wines. I am not a huge wine drinker but their wines were always good. The reds werent too harsh and acidic. I really hated to hear they had closed. Soo pretty during Christmas time..I really hope the winery keeps its heartbeat and that more great wine comes from their fields. Id love to know where to get kirkland ranch wines if any left!!
by Matthew
I just found a Kirkland Ranch 1998 Cabernet Sauvignon in my cellar. Tasting notes from several sites suggest it was drinkable through 2008. It’s 2011 and it is fabulous. Long live the family and awesome winemaking abilities behind this wine
by John Joseph