Just over three months after offloading its Mumm Napa business, Pernod Ricard has completed a full departure from California’s wine industry through the sale of Kenwood Vineyards in the state.
The group, which agreed in December to divest of Mumm’s sparkling wine operations in California to Trinchero Family Wine & Spirits, said late yesterday (1 April) that Kenwood would return to F Korbel & Bros, which sold the business to Pernod Ricard in 2014. The transaction was described in a statement as “further support [of] the streamlining of the group’s wine operational footprint in California”, although a spokesperson for Pernod Ricard has confirmed the complete departure from Californian wine to Global Drinks Intel.
As well as the namesake wine brand, Korbel, which is located around 30 miles west of Kenwood, will also assume ownership of Kenwood’s vineyards – covering around 20 acres – production facilities and visitor centre. Financial details were not released by either party, although local reports have set the sale price at US$4m.
Speaking exclusively to Global Drinks Intel earlier this year, Trinchero’s COO, Corey Beck, provided further colour around the family-owned company’s move for Mumm Napa.
“They’re one of the top five in terms of visitors in Napa Valley,” he told editor Olly Wehring. “They see about 60,000 people a year at their facility. Our direct-to-consumer isn’t as robust as theirs. We can also see an advantage in plugging their wines into our sales team. So, the synergies are incredible.
“More than anything,” Beck added, “there were symbolic reasons for making this purchase. The industry’s facing a lot of headwinds; wineries are selling, and vines are being pulled out. It’s important to show our partners – from our wholesalers to our employees and our customers – that we’re in it for the long haul.”
