Schrader sold to Constellation

Tasting notes, varietals, grapes - anything related to wine
Message
Author
User avatar
Karen Troisi
BerserkerBusiness
BerserkerBusiness
Posts: 1837
Joined: August 1st, 2009, 4:35 am
Location: Napa, Sonoma, 74-41

The Next Big Winery Buy-Out Thread split

#1 Post by Karen Troisi » June 16th, 2017, 1:32 pm

Constellation buys Scrader!
ITB - You should only make wines you love to drink.

User avatar
Peter Tryba
Posts: 3145
Joined: March 25th, 2009, 6:55 pm
Location: Newton, MA

The Next Big Winery Buy-Out Thread

#2 Post by Peter Tryba » June 16th, 2017, 1:33 pm

Schrader
ITB
kidney fund: youcaring.com

User avatar
Karen Troisi
BerserkerBusiness
BerserkerBusiness
Posts: 1837
Joined: August 1st, 2009, 4:35 am
Location: Napa, Sonoma, 74-41

The Next Big Winery Buy-Out Thread

#3 Post by Karen Troisi » June 16th, 2017, 1:33 pm

ITB - You should only make wines you love to drink.

User avatar
Roy Piper
Posts: 3875
Joined: January 27th, 2009, 1:57 pm

The Next Big Winery Buy-Out Thread

#4 Post by Roy Piper » June 16th, 2017, 1:38 pm

Brilliant move. Can see all sorts of upside for Constellation.

They can increase production a lot because Schrader now has access to 500 acres of ToKalon. Their production price drops because they won't have the fruit costs, as they can go in-house. As the old contracts ends with Andy, they won't be subject to the new 175x bottle price for fruit. And they can remove the "Beckstoffer" from the label and just call it "ToKalon." Not to mention Constellation has even better sections of ToKalon than Beckstoffer. Finally, they won't be subject to the tonnage reductions all of the other clients in TK will have to deal with as the vineyard goes through its replant.
ITB, text me anytime at 707-266-4168

Steve Crawford
Posts: 1474
Joined: August 28th, 2013, 3:29 pm
Location: NC

The Next Big Winery Buy-Out Thread

#5 Post by Steve Crawford » June 16th, 2017, 1:46 pm

TRB is probably in line for a raise. im not saying he has built the brand as much as the fruit sources, but he has had a lot to do with their success as a whole and how they are viewed.

User avatar
John Morris
GCC Member
GCC Member
Posts: 16755
Joined: June 21st, 2009, 2:09 pm
Location: Gotham

The Next Big Winery Buy-Out Thread

#6 Post by John Morris » June 16th, 2017, 1:48 pm

Roy Piper wrote:Brilliant move. Can see all sorts of upside for Constellation.

They can increase production a lot because Schrader now has access to 500 acres of ToKalon. Their production price drops because they won't have the fruit costs, as they can go in-house.
I would be pretty sure the number crunchers at Constellation will have no interest in subsidizing the Schrader brand by selling ToKalon fruit below market price. They'll be looking at their return on the land as well as on their new winery.
"I pencilled in half an hour to suffer fools tomorrow, but now I’m thinking I might bump it out until Monday." -- @duchessgoldblat

“Only he who has walked through the deepest valley knows how other valleys of lesser depth are relatively more walk-throughable, valley-wise.” – @TheTweetOfGod

Larry Kaplan
Posts: 1345
Joined: May 28th, 2009, 6:17 pm
Location: Palatine, Illinois

Schrader sold to Constellation

#7 Post by Larry Kaplan » June 16th, 2017, 1:54 pm

http://www.winespectator.com/webfeature ... er-Cellars

Drinks giant Constellation Brands has purchased Napa Valley cult winery Schrader Cellars, founder Fred Schrader told Wine Spectator. The blockbuster deal gives Constellation one of the elite names in Napa Cabernet, known for its Beckstoffer To Kalon Vineyard cuvée and several other notable bottlings.
The Wine Cellar

ODERINT DUM METUANT
The only difference between genius and stupidity is genius has limits. A.Einstein

User avatar
c fu
Moderator
<dfn>Moderator</dfn>
Posts: 30829
Joined: January 27th, 2009, 1:26 pm
Location: Pasadena

Schrader sold to Constellation

#8 Post by c fu » June 16th, 2017, 1:58 pm

Wow just wow.
Ch@rlie F|_|
"Roulot is Roulot"©

Instagram: http://www.instagram.com/clayfu.wine

User avatar
Roy Piper
Posts: 3875
Joined: January 27th, 2009, 1:57 pm

The Next Big Winery Buy-Out Thread

#9 Post by Roy Piper » June 16th, 2017, 1:58 pm

They would save enormous sums by going in house. Why pay $100,000 per acre for fruit when you can pay the cost of managing the vineyard at $15,000? Besides, they don't sell fruit to others. It's all in house already so there is no "subsidising." It's just being shifted from Mondavi Reserve going 3-tier at $150 to all direct sales of a lot of cases at $225. Not only will it save many dollars per bottle in cost but will also add many dollars of revenue per bottle. Not to mention there is no way to expand the brand while Beckstoffer ToKalon lowers production due to a decade of replants.

Constellation does not outsource.
ITB, text me anytime at 707-266-4168

User avatar
Scott Brunson
GCC Member
GCC Member
Posts: 8804
Joined: November 15th, 2011, 2:55 am
Location: in between coastal SC and south FL

Schrader sold to Constellation

#10 Post by Scott Brunson » June 16th, 2017, 1:59 pm

What C Fu said
Tous les chemins mènent à la Bourgogne!
On CT, I'm S1

rick m
Posts: 318
Joined: July 6th, 2009, 10:59 am

Schrader sold to Constellation

#11 Post by rick m » June 16th, 2017, 2:00 pm

really? dang!
ITB
rick matsui

User avatar
Andrew W.
GCC Member
GCC Member
Posts: 521
Joined: April 14th, 2012, 8:55 am
Location: NC

Schrader sold to Constellation

#12 Post by Andrew W. » June 16th, 2017, 2:02 pm

Wow, didn't see that coming
A. 'Wy.man'

User avatar
ky1em!ttskus
Posts: 4500
Joined: January 27th, 2012, 7:38 am

Schrader sold to Constellation

#13 Post by ky1em!ttskus » June 16th, 2017, 2:04 pm

Yeah, that was my reaction. Wow.

User avatar
Brian Tuite
GCC Member
GCC Member
Posts: 19152
Joined: July 3rd, 2010, 8:53 am
Location: Podunk CA

The Next Big Winery Buy-Out Thread

#14 Post by Brian Tuite » June 16th, 2017, 2:05 pm

Karen Troisi wrote:Constellation buys Scrader!
We have a winner!
Bob Wood - 1949-2013 Berserker for eternity! RIP

"On self-reflection, I think a big part of it was me just being a PITA customer..." ~ Anonymous Berserker

"Something so subtle only I can detect it." ~ Randy Bowman

2019 WOTY...

User avatar
Arnold Caplan
GCC Member
GCC Member
Posts: 596
Joined: January 29th, 2009, 6:52 pm

Schrader SOLD!!!!

#15 Post by Arnold Caplan » June 16th, 2017, 2:06 pm

We hope this note finds you well and enjoying a wonderful start to the summer. In the Napa Valley, our growing season began right on time with beautiful warm, dry days that are ideal for flower set. While it is a little too early to provide feedback, all indications are that very good things will come our way for harvest.

As we head into our 18th season at Schrader, we reflect with great pride on what we have achieved together and we are excited for the path ahead.

2000 was our first harvest from the Beckstoffer To Kalon Vineyard and we began with a brilliant young man who had never before made a bottle of Cabernet Sauvignon. Now, Thomas Brown is the most critically celebrated winemaker in America and the youngest to receive a perfect 100-point score from Robert Parker, Wine Advocate, and the only one to receive the same 'perfect' score from James Laube, Wine Spectator, via the blind tasting review program.

Our commitment to winemaking excellence began with a single block of clone 4 Cabernet in the heart of the Beckstoffer To Kalon Vineyard, and it has carried forward through nearly two decades to include what we believe are the finest sections of the Beckstoffer Vineyards in Oakville, Rutherford and St. Helena. Our goal, always, has been to bring you the very finest wine experience possible.

Since beginning on this journey, it has been an honor to faithfully and diligently care for our wine program and do our personal best to serve our loyal customers.

Recently, we were presented with an exceptional opportunity that will allow us to bring forward greater resources to create the Schrader wines you love and enjoy. After thoughtful discussions with our winemaker, Thomas Brown, and heartfelt consideration, we have made the decision to move forward with Constellation Brands, the perfect steward for our wine program. We embark on this path together, along with Thomas at the winemaking helm, committed to our standard of excellence in wine and customer relations. We are excited for the possibilities that will be realized with this transition.

Thomas will continue to oversee the vineyard operations and make the wines at Outpost. We will continue to participate in brand development and welcome you at events and tastings, and Frank will continue to be the friendly voice you hear on the other end of the phone for customer service. This is a ‘work with’, not a hand off. We have spent the better part of our lives bringing forward this magical wine and we will continue to be part of its enduring success.

In the coming months, what changes will you see in your experience with Schrader — none. We will continue to do our very best and bring you our very best. The 2017 harvest is poised to be one for the record books and we are delighted to be cultivating it with our friends and now family at Constellation Brands.

If you have any questions about this news please refer to our ‘Questions You May Have’ page on our website that may help clarify your initial questions. For immediate assistance feel free to email us at info@schradercellars.com or call us at 707 942 1212.

As ever, we sincerely appreciate your faith in us and enthusiastic support of our wine program.

With warmth and cheer,

Carol, Fred & Thomas
2016 WOTY
2003 Schrader Beckstoffer To-Kalon
2015 WOTY
2002 Harlan Estate
2014 WOTY
2007 Saxum JBV
2013 WOTY:
2005 Saxum James Berry Rocket Block
2012 WOTY:
1996 Salon
2011 WOTY:
2006 Marcassin Chardonnay

Your are what you drink.

User avatar
PeterH
GCC Member
GCC Member
Posts: 3423
Joined: May 14th, 2011, 3:06 pm

The Next Big Winery Buy-Out Thread

#16 Post by PeterH » June 16th, 2017, 2:06 pm

A quick look at the financials of Constellation is an eye opener as to the value of name brands in the drinks business.
Three things pop out immediately.
1. They have a huge amount of debt as a result of buying those brands.
2. Fully 60% of their net assets and Goodwill and Intangibles i.e. the cost of the brand names.
As a corollary of the first two items, they actually have negative tangible net worth.
3. The kicker comes in the profitability, up steadily over the last three years increasing from an enviable 14% to an astounding 20% of sales.

P Hickner
P Hickner

On s'en bat les couilles

User avatar
Joe B
GCC Member
GCC Member
Posts: 9062
Joined: October 28th, 2012, 2:40 pm
Location: North Burbs Chicago Illinois

Schrader SOLD!!!!

#17 Post by Joe B » June 16th, 2017, 2:09 pm

Third times the charm.
J W@ll @ce

Jonathan H
Posts: 244
Joined: June 10th, 2011, 7:51 pm

The Next Big Winery Buy-Out Thread

#18 Post by Jonathan H » June 16th, 2017, 2:13 pm

Wow, another one by Constellation!
- H@ll

Steve Crawford
Posts: 1474
Joined: August 28th, 2013, 3:29 pm
Location: NC

The Next Big Winery Buy-Out Thread

#19 Post by Steve Crawford » June 16th, 2017, 2:16 pm

Roy Piper wrote:They would save enormous sums by going in house. Why pay $100,000 per acre for fruit when you can pay the cost of managing the vineyard at $15,000? Besides, they don't sell fruit to others. It's all in house already so there is no "subsidising." It's just being shifted from Mondavi Reserve going 3-tier at $150 to all direct sales of a lot of cases at $225. Not only will it save many dollars per bottle in cost but will also add many dollars of revenue per bottle. Not to mention there is no way to expand the brand while Beckstoffer ToKalon lowers production due to a decade of replants.

Constellation does not outsource.
roy-thanks for saving me the time to write this reply. this sale clearly creates a beckstoffer vacuum, assuming schrader is completely done with andy now or in the near future. who do you see (in terms of producers) filling this vacuum? existing clientele or new blood?

User avatar
AlexO
Posts: 786
Joined: December 16th, 2013, 8:39 am
Location: Keller, TX

Schrader sold to Constellation

#20 Post by AlexO » June 16th, 2017, 2:23 pm

I'm going to assume 2 items that I'm certain Constellation had locked up for rest of eternity:

1) Schrader grape contracts with Beckstoffer
2) Thomas Rivers Brown is winemaker from now until the end of time

I mean let's be honest, those above 2 items are what make Schrader what it is.
_________
@lex Offutt

Alan Eden - Berserker for Life!

User avatar
Scott Brunson
GCC Member
GCC Member
Posts: 8804
Joined: November 15th, 2011, 2:55 am
Location: in between coastal SC and south FL

Schrader sold to Constellation

#21 Post by Scott Brunson » June 16th, 2017, 2:29 pm

AlexO wrote:I'm going to assume 2 items that I'm certain Constellation had locked up for rest of eternity:

1) Schrader grape contracts with Beckstoffer
2) Thomas Rivers Brown is winemaker from now until the end of time

I mean let's be honest, those above 2 items are what make Schrader what it is.
Not likely on #1
Tous les chemins mènent à la Bourgogne!
On CT, I'm S1

DAlmeida
Posts: 7
Joined: April 28th, 2016, 6:15 am
Location: NorCal

The Next Big Winery Buy-Out Thread

#22 Post by DAlmeida » June 16th, 2017, 2:45 pm

PeterH wrote:A quick look at the financials of Constellation is an eye opener as to the value of name brands in the drinks business.
Three things pop out immediately.
1. They have a huge amount of debt as a result of buying those brands.
2. Fully 60% of their net assets and Goodwill and Intangibles i.e. the cost of the brand names.
As a corollary of the first two items, they actually have negative tangible net worth.
3. The kicker comes in the profitability, up steadily over the last three years increasing from an enviable 14% to an astounding 20% of sales.

P Hickner

Their Corona/Modelo market here in the states must be huge !
Dave

User avatar
Ed Gonzales
GCC Member
GCC Member
Posts: 1224
Joined: January 30th, 2009, 1:22 pm
Location: Dog House

Schrader sold to Constellation

#23 Post by Ed Gonzales » June 16th, 2017, 2:51 pm

my f-i-l is with constellation. i know what we will be drinking this thanksgiving and xmas ;)
ed s @ n

User avatar
Humberto Dorta
Contributor
Contributor
Posts: 3004
Joined: February 4th, 2009, 11:55 am
Location: Meadville, PA

Schrader sold to Constellation

#24 Post by Humberto Dorta » June 16th, 2017, 2:53 pm

Hmmm. Well we shall see. Might free up some cash ;)
--Berto

User avatar
Scott Brunson
GCC Member
GCC Member
Posts: 8804
Joined: November 15th, 2011, 2:55 am
Location: in between coastal SC and south FL

Schrader sold to Constellation

#25 Post by Scott Brunson » June 16th, 2017, 2:58 pm

^
[whistle.gif]
Tous les chemins mènent à la Bourgogne!
On CT, I'm S1

User avatar
AlexO
Posts: 786
Joined: December 16th, 2013, 8:39 am
Location: Keller, TX

Schrader sold to Constellation

#26 Post by AlexO » June 16th, 2017, 3:11 pm

I'm updating my thinking, constellation can use chunks of their To Kalon to make Schrader and get better bang for the buck than selling them as Mondavi Reseve.

Also, Mondavi had those great vineyards in Stags Leap, so maybe a Schrader SLD?

The more I think about it, this is a big win for parties.

Also makes me wonder how this might affect Beckstoffer and others that buy his grapes.
_________
@lex Offutt

Alan Eden - Berserker for Life!

User avatar
Ken Strauss
GCC Member
GCC Member
Posts: 4796
Joined: November 22nd, 2015, 9:03 am
Location: Sunny South Florida

Schrader sold to Constellation

#27 Post by Ken Strauss » June 16th, 2017, 3:11 pm

Scott Brunson wrote:
AlexO wrote:I'm going to assume 2 items that I'm certain Constellation had locked up for rest of eternity:

1) Schrader grape contracts with Beckstoffer
2) Thomas Rivers Brown is winemaker from now until the end of time

I mean let's be honest, those above 2 items are what make Schrader what it is.
Not likely on #1
At the end of the article it states Constellation owns most of the to kalon vineyard through ownership of Mondavi. Further the winemakers will determine how much Mondavi and Schrader will share. Most likely production of Schrader will increase.
"Explaining is not supporting."

"Independence is a state of mind"

User avatar
GregT
Posts: 7947
Joined: April 15th, 2009, 3:12 pm

Schrader sold to Constellation

#28 Post by GregT » June 16th, 2017, 3:13 pm

Once they locked up Meiomi and Alice White, you knew this was coming.
G . T a t a r

[i]"the incorrect overuse of apostrophes is staggering these days. I wonder if half the adults these days have any idea what they are for." Chris Seiber, 5/14/19[/i]

User avatar
PeterH
GCC Member
GCC Member
Posts: 3423
Joined: May 14th, 2011, 3:06 pm

The Next Big Winery Buy-Out Thread

#29 Post by PeterH » June 16th, 2017, 3:16 pm

Their Corona/Modelo market here in the states must be huge ![/quote]

And a cash cow if there ever was one. Anyone can make better beer, and many companies can distribute efficiently, but the brand name is what drives the mark-up.

P Hickner
P Hickner

On s'en bat les couilles

NED VALOIS
GCC Member
GCC Member
Posts: 5727
Joined: March 7th, 2012, 9:47 am
Location: South Miami,Fl

Schrader sold to Constellation

#30 Post by NED VALOIS » June 16th, 2017, 3:16 pm

How much ?

User avatar
John Morris
GCC Member
GCC Member
Posts: 16755
Joined: June 21st, 2009, 2:09 pm
Location: Gotham

The Next Big Winery Buy-Out Thread

#31 Post by John Morris » June 16th, 2017, 4:25 pm

Roy Piper wrote:They would save enormous sums by going in house. Why pay $100,000 per acre for fruit when you can pay the cost of managing the vineyard at $15,000? Besides, they don't sell fruit to others. It's all in house already so there is no "subsidising." It's just being shifted from Mondavi Reserve going 3-tier at $150 to all direct sales of a lot of cases at $225. Not only will it save many dollars per bottle in cost but will also add many dollars of revenue per bottle. Not to mention there is no way to expand the brand while Beckstoffer ToKalon lowers production due to a decade of replants.

Constellation does not outsource.
If they can shift fruit from Mondavi to Schrader and get a much higher price for the finished wine from the same fruit, that makes perfect corporate sense. But I'm sure Constellation is not looking at this a way to lower Schrader's cost of fruit by selling to it at an inside, i.e., below-market, price.

The problem with that is that it would mean that Constellation would not be maximizing the return on the capital invested in its vineyard asset. Public company CFOs pay a lot of attention to returns on capital and they scrutinize subsidies between businesses because it can distort the real profitability of business units and lead to bad investments.

You're viewing this entirely from the winemaker's perspective. Constellation may just be looking at Schrader as a way to maximize its prior investment in ToKalon.
"I pencilled in half an hour to suffer fools tomorrow, but now I’m thinking I might bump it out until Monday." -- @duchessgoldblat

“Only he who has walked through the deepest valley knows how other valleys of lesser depth are relatively more walk-throughable, valley-wise.” – @TheTweetOfGod

User avatar
John Morris
GCC Member
GCC Member
Posts: 16755
Joined: June 21st, 2009, 2:09 pm
Location: Gotham

Schrader sold to Constellation

#32 Post by John Morris » June 16th, 2017, 4:48 pm

I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
"I pencilled in half an hour to suffer fools tomorrow, but now I’m thinking I might bump it out until Monday." -- @duchessgoldblat

“Only he who has walked through the deepest valley knows how other valleys of lesser depth are relatively more walk-throughable, valley-wise.” – @TheTweetOfGod

User avatar
Merrill Lindquist
BerserkerBusiness
BerserkerBusiness
Posts: 10896
Joined: July 22nd, 2009, 6:58 pm
Location: Calistoga, Napa Valley, CA

Schrader sold to Constellation

#33 Post by Merrill Lindquist » June 16th, 2017, 4:57 pm

John Morris wrote:I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
I have not followed up on my neighbor, Eisele Vineyard.
They were purchased by Chateau Latour a few years back - not sure, is that a big winery? Extra twist is the foreign connection. It was Araujo when it was purchased, but now, sanely, the name has returned to Eisele, but I have no idea about the wines.

I look on with a lot of interest in these things. Interesting that Schrader had no vineyard holdings.
Merrill
EMH Vineyards - Home of the Black Cat
email:Merrill@EMHVineyards.com

User avatar
Todd F r e n c h
Site Admin
<dfn>Site Admin</dfn>
Posts: 38788
Joined: January 27th, 2009, 8:46 am
Location: San Clemente, CA

Schrader sold to Constellation

#34 Post by Todd F r e n c h » June 16th, 2017, 5:03 pm

Merrill Lindquist wrote:
John Morris wrote:I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
I have not followed up on my neighbor, Eisele Vineyard.
They were purchased by Chateau Latour a few years back - not sure, is that a big winery? Extra twist is the foreign connection. It was Araujo when it was purchased, but now, sanely, the name has returned to Eisele, but I have no idea about the wines.

I look on with a lot of interest in these things. Interesting that Schrader had no vineyard holdings.
Agreed - one wonders where the value is if the 2 points mentioned above are NOT set in stone for eternity.
Apparently I'm lazy, have a narrow agenda, and offer little in the way of content and substance (RMP) (and have a "penchant for gossip" -KBI)

User avatar
Roy Piper
Posts: 3875
Joined: January 27th, 2009, 1:57 pm

The Next Big Winery Buy-Out Thread

#35 Post by Roy Piper » June 16th, 2017, 5:06 pm

Constellation may also be ready to start a ToKalon Winery brand, complete with possibly a new winery being built. So many changes are afoot. I think they worry less about the vineyards and see them purely as a means to an end... maximum revenue in at minimal long term cost. I don't see them paying 175x the bottle price to Beckstoffer. Just don't. But obviously that is just my sense. I have not heard details.
ITB, text me anytime at 707-266-4168

User avatar
John Morris
GCC Member
GCC Member
Posts: 16755
Joined: June 21st, 2009, 2:09 pm
Location: Gotham

Schrader sold to Constellation

#36 Post by John Morris » June 16th, 2017, 5:14 pm

I'm old enough to remember Sterling going into decline when it was bought by Nestle, and Heublein didn't do any favors for BV and Inglenook when it owned them.

What's the take on Mondavi under Constellation? That's quite a different case because the family had taken the company public and then faced enormous pressure from shareholders, so it's not like that went from being a small, family-held operation into the hands of a big public company. But I'm curious what people think the wines have been like under Constellation. I rarely have them.
"I pencilled in half an hour to suffer fools tomorrow, but now I’m thinking I might bump it out until Monday." -- @duchessgoldblat

“Only he who has walked through the deepest valley knows how other valleys of lesser depth are relatively more walk-throughable, valley-wise.” – @TheTweetOfGod

Steve Crawford
Posts: 1474
Joined: August 28th, 2013, 3:29 pm
Location: NC

Schrader sold to Constellation

#37 Post by Steve Crawford » June 16th, 2017, 5:15 pm

John Morris wrote:I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
the comps aren't exact. but the best example i can think of is livingston moffet into dana. realm may honestly fit this definition as well. they essentially were bought out, and have been doing quite well since.

User avatar
Markus S
Posts: 6058
Joined: May 20th, 2010, 7:27 am

Schrader sold to Constellation

#38 Post by Markus S » June 16th, 2017, 5:17 pm

Wonder if there is any tie-in with the Amazon-Whole Foods buy?

On the same day, no less!
$ _ € ® e . k @

User avatar
Merrill Lindquist
BerserkerBusiness
BerserkerBusiness
Posts: 10896
Joined: July 22nd, 2009, 6:58 pm
Location: Calistoga, Napa Valley, CA

Schrader sold to Constellation

#39 Post by Merrill Lindquist » June 16th, 2017, 5:18 pm

Todd F r e n c h wrote:
Merrill Lindquist wrote:
John Morris wrote:I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
I have not followed up on my neighbor, Eisele Vineyard.
They were purchased by Chateau Latour a few years back - not sure, is that a big winery? Extra twist is the foreign connection. It was Araujo when it was purchased, but now, sanely, the name has returned to Eisele, but I have no idea about the wines.

I look on with a lot of interest in these things. Interesting that Schrader had no vineyard holdings.
Agreed - one wonders where the value is if the 2 points mentioned above are NOT set in stone for eternity.
My head spins at the analysis from a financial point of view. I am not that smart, so cannot participate at that level. But there are all kinds of variations on wine producing. Some who have openly expressed no interest in owning vineyards, now do. Wine ventures founded because of "love for what we do," have now disappeared. If I ever read again about a "wine made with love," I will barf.

Every venture is different. I am asked frequently about EMH's situation, and I am candid (as with all things). My home, my vineyard, my occupation, and my avocation are all one. Even the person I am. So I read with interest, but I don't think many of these situations apply to me or to EMH.

Not getting rich here very quickly.
Merrill
EMH Vineyards - Home of the Black Cat
email:Merrill@EMHVineyards.com

User avatar
Merrill Lindquist
BerserkerBusiness
BerserkerBusiness
Posts: 10896
Joined: July 22nd, 2009, 6:58 pm
Location: Calistoga, Napa Valley, CA

Schrader sold to Constellation

#40 Post by Merrill Lindquist » June 16th, 2017, 5:20 pm

Steve Crawford wrote:
John Morris wrote:I'm curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I'm not asking to be pissy. I'm really curious is anyone has examples where it's worked out well for wine lovers.
the comps aren't exact. but the best example i can think of is livingston moffet into dana. realm may honestly fit this definition as well. they essentially were bought out, and have been doing quite well since.
This is an excellent perspective. About LM and Dana. TONS of money thrown into that Dana venture. Haven't looked in for awhile. The land is the land - the experience is the experience. I thought some of the LM wines were excellent.
Merrill
EMH Vineyards - Home of the Black Cat
email:Merrill@EMHVineyards.com

User avatar
Todd F r e n c h
Site Admin
<dfn>Site Admin</dfn>
Posts: 38788
Joined: January 27th, 2009, 8:46 am
Location: San Clemente, CA

Schrader sold to Constellation

#41 Post by Todd F r e n c h » June 16th, 2017, 5:25 pm

Merrill Lindquist wrote:
Not getting rich here very quickly.
I've been to your home/vineyard - 'rich' can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you'll have riches in another way [cheers.gif]
Apparently I'm lazy, have a narrow agenda, and offer little in the way of content and substance (RMP) (and have a "penchant for gossip" -KBI)

User avatar
Dan Hammer
GCC Member
GCC Member
Posts: 5494
Joined: June 3rd, 2009, 11:05 am
Location: flight Level 3 seven thousand. NYC Metro

Schrader sold to Constellation

#42 Post by Dan Hammer » June 16th, 2017, 5:32 pm

I received the e mail too. I was surprised because I was thrown off the list. [snort.gif]
This space for rent.

Mel Knox
GCC Member
GCC Member
Posts: 1812
Joined: July 30th, 2010, 8:46 am
Location: San francisco

Schrader sold to Constellation

#43 Post by Mel Knox » June 16th, 2017, 5:35 pm

As a vendor, or a semi-retired one, I can opine re Mondavi and Araujo/Eisele. Mondavi seems to be doing now pretty much what they were doing then. Of course, there are changes, but I think Constellation has a if it aint broke, don t fix it approach.

There are changes at Araujo/Eisele, but the goal is to make the wine better, not to get ten tons an acre.

Let's not forget that many of these wineries, where big companies took over, were not that profitable.
Chalone Group never made much money, for example. Sometimes brands just get old.
ITB

User avatar
Merrill Lindquist
BerserkerBusiness
BerserkerBusiness
Posts: 10896
Joined: July 22nd, 2009, 6:58 pm
Location: Calistoga, Napa Valley, CA

Schrader sold to Constellation

#44 Post by Merrill Lindquist » June 16th, 2017, 5:42 pm

Todd F r e n c h wrote:
Merrill Lindquist wrote:
Not getting rich here very quickly.
I've been to your home/vineyard - 'rich' can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you'll have riches in another way [cheers.gif]
Understood. Thank you for your comments. It is pretty special, but a lot of hard work and, yes, risk. It would never go to a large wine concern. I am pretty protective of this property. I hope I never describe myself as being a "steward of the land." That's just total BS. But this is where I brought up my daughter, learned about wine, and have my pets. All important to me.

Just saw Mel Knox's post - would love to host you here, Mel.

Can you merge this thread? We have 2 going on.
Merrill
EMH Vineyards - Home of the Black Cat
email:Merrill@EMHVineyards.com

User avatar
GregT
Posts: 7947
Joined: April 15th, 2009, 3:12 pm

Schrader sold to Constellation

#45 Post by GregT » June 16th, 2017, 5:47 pm

Interesting that Schrader had no vineyard holdings.
Neither did Meiomi for which they paid $285M, or the Prisoner, for which they paid $315M. They're buying brands, and I guess they see Schrader as a luxury brand. Interestingly, they said that the Prisoner was a luxury brand as well.
G . T a t a r

[i]"the incorrect overuse of apostrophes is staggering these days. I wonder if half the adults these days have any idea what they are for." Chris Seiber, 5/14/19[/i]

Mel Knox
GCC Member
GCC Member
Posts: 1812
Joined: July 30th, 2010, 8:46 am
Location: San francisco

Schrader sold to Constellation

#46 Post by Mel Knox » June 16th, 2017, 6:08 pm

Merrill,

Now that I am retired I have all the time in the world, so visiting you sounds great.
ITB

User avatar
Merrill Lindquist
BerserkerBusiness
BerserkerBusiness
Posts: 10896
Joined: July 22nd, 2009, 6:58 pm
Location: Calistoga, Napa Valley, CA

Schrader sold to Constellation

#47 Post by Merrill Lindquist » June 16th, 2017, 6:15 pm

Mel Knox wrote:Merrill,

Now that I am retired I have all the time in the world, so visiting you sounds great.
Send me an email! It will be great fun! I retired...once. champagne.gif
Merrill
EMH Vineyards - Home of the Black Cat
email:Merrill@EMHVineyards.com

User avatar
Anton D
GCC Member
GCC Member
Posts: 30313
Joined: October 17th, 2013, 11:25 am
Location: Chico, CA

Schrader sold to Constellation

#48 Post by Anton D » June 16th, 2017, 6:20 pm

Markus S wrote:Wonder if there is any tie-in with the Amazon-Whole Foods buy?

On the same day, no less!
"Alexa, buy Schrader wine."
Last edited by Anton D on June 16th, 2017, 6:35 pm, edited 1 time in total.
Anton Dotson

What is man, when you come to think upon him, but a minutely set, ingenious machine for turning, with infinite artfulness, the fine red wine of Shiraz into urine?

User avatar
R. Gleiberm@n
GCC Member
GCC Member
Posts: 321
Joined: November 9th, 2012, 1:27 pm

Schrader sold to Constellation

#49 Post by R. Gleiberm@n » June 16th, 2017, 6:24 pm

Humberto Dorta wrote:Hmmm. Well we shall see. Might free up some cash ;)
That was my 1st thought!
R odney

"You guys playin' cards?"

User avatar
PaulMills
GCC Member
GCC Member
Posts: 2037
Joined: July 11th, 2012, 4:54 pm
Location: Greenville, SC

Schrader sold to Constellation

#50 Post by PaulMills » June 16th, 2017, 6:26 pm

Todd F r e n c h wrote:
Merrill Lindquist wrote:
Not getting rich here very quickly.
I've been to your home/vineyard - 'rich' can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you'll have riches in another way [cheers.gif]

I would opine that anyone posting on a wine forum is "rich".


I finally made the Schrader list and passed on the purchase due to the cost of four bottles, but bought two from a friend on the list. I do not think think I will regret passing since there is so much other wine out there to buy, but I think I will make the list again much sooner than if Constellation had not bought them.

Post Reply

Return to “Wine Talk”