Duckhorn wine group buys 50 acres of Napa Valley vineyards
The Duckhorn Portfolio Inc. (NYSE: NAPA), whose wine brands include Duckhorn and Decoy, on Thursday said it completed the purchase of three Napa Valley vineyards totaling 50 acres and leased a fourth vineyard.
The deals include 40 acres in two parcels of the Stanly Ranch vineyard in Los Carneros appellation, where Duckhorn’s Migration winery is located, and the 10-acre Red Wing Vineyard in the St. Helena winegrowing region.
Financial details of the acquisitions weren’t disclosed. But Lori Beaudoin, chief financial officer, said last month during a conference call on quarterly results that it planned to spend $14.3 million total to purchase three Napa Valley vineyards as fruit sources for brands such as Duckhorn and Migration.
The company also signed a long-term lease with Alton Family Vineyard, located adjacent to Red Wing Vineyard, according to Duckhorn. The grapes will go into the Duckhorn Vineyards brand.
The two Stanly Ranch parcels were planted in 2001 and are adjacent to the Migration winery and a 10-acre vineyard already owned by the company. Located southwest of Napa, Stanly Ranch Haire clay loam soils and a cool climate influenced by the site’s proximity to San Pablo Bay. The new acreage is planted to five clones of pinot noir and three clones of chardonnay, which will be used for Migration’s cool-climate chardonnay and pinot noir labels.
Red Wing Vineyard is planted to sauvignon blanc, sémillon and merlot. It has been a source of sauvignon blanc for the Duckhorn Vineyards brand for more than 15 years, the company said. The merlot block is set to be redeveloped with sauvignon blanc and sémillon.
That vineyard is now called Wolfe Vineyard after the property’s previous owners, Duckhorn said. The 40 new acres at Stanly Ranch Vineyard will also be renamed in coming months
“As our portfolio has evolved to include ten renowned luxury wineries, our commitment to having a robust Estate vineyard program continues to be central to ensuring the exceptional quality of our wines,” stated Alex Ryan, CEO and president.
The Duckhorn Portfolio’s vineyard holdings now include 298 acres in Napa Valley, 500 acres in other North Coast appellations, 82 acres in the Central Coast’s Mt. Harlan appellation and 20 acres at Longwinds Vineyard on Red Mountain in Washington state.
The company operates eight winemaking facilities and seven tasting rooms. Brands also include Paraduxx, Goldeneye, Canvasback, Calera, Kosta Browne, Greenwing and Postmark.
Jeff Quackenbush covers wine, construction and real estate. Before the Business Journal, he wrote for Bay City News Service in San Francisco. He has a degree from Walla Walla University. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
