What Happened When This Founder Bought His Winery Back From Its Corporate Parent

Yahoo

29-06-2025

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James Hall didn't intend to buy back Patz & Hall, the Sonoma winery he cofounded in 1988, any more than he meant to sell it in the first place. When Patz & Hall was sold to Washington State's Ste. Michelle Wine Estates in 2015, Hall stayed on as director of winemaking while his former business partner went on to establish Maritana Vineyards in Sonoma. Hall tells Robb Report that when Ste. Michelle first came knocking, the four founders (Hall, his wife, Anne Moses, and Donald and Heather Patz) had no plan to sell; they were eagerly preparing for the future. 'From production volumes and pricing to direct-to-consumer strategies and digital presence we carefully mapped out our future,' Hall says. 'We were confident in our direction and deeply committed to remaining independent.'
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When Patz & Hall's chairman, Hank Salvo, approached the foursome to inform them of Ste. Michelle's entreaty, the partners were unanimously uninterested. 'We weren't looking to sell as we were committed to our new plans,' Hall says. 'Hank, ever the strategist, reminded us that even a conversation could be enlightening.' The family-run winery had never formally assessed its market value, but Salvo said engaging with Ste. Michelle could help them better understand their position and reaffirm their vision. The foursome did more than just entertain the idea; they found a price they were willing to take. But as the deal closed, Hall had one major concern: 'Could we preserve the soul of Patz & Hall?'
He agreed to stay on as winemaker on three conditions. First, he wanted full creative control on items such as harvest timing, vineyard contracts, barrel selection, and blending decisions. He also requested significant upgrades to his winemaking tools, such as state-of-the-art equipment, a new lab, and expanded cellar staff. His final prerequisite was for Ste. Michelle to agree that he could continue to work with his 'cherished' vineyard partners. 'These growers are the lifeblood of our wine quality,' Hall says. 'Without them, our identity would be lost.'
For the next six years, he led the team at Patz & Hall, where he continued to focus on winemaking, vineyard sourcing, and doing everything he could to improve the wines and strengthen the company. 'When Ste. Michelle Wine Estates took over, that sense of purpose didn't change,' Hall says. 'What did change was the freedom it gave me.' With a large corporation to handle things like finance, operations, and logistics, Hall was able to concentrate on what he loves most: making wine. 'It was a luxury, really. I could pour all my energy into the vineyards, the cellar, and the craft itself, knowing the broader business was in capable hands,' he says. Patz & Hall kept on making vineyard designate Chardonnay and Pinot Noir from Carneros, Russian River Valley, Mendocino, and Santa Lucia Highlands sourced from some of California's finest growers such as Larry Hyde, George Martinelli, Charlie Chenoweth, and Gary Pisoni.
However, in July 2021 private equity firm Sycamore Partners purchased Ste. Michelle Wine Estates; the company then reorganized the SMWE portfolio into regional groups. With holdings in Washington, Oregon, and California, Sycamore grouped Patz & Hall into the California group alongside Stag's Leap Wine Cellars and Conn Creek, each now operating as its own business with separate financial structures. Then came what Hall calls the big shift: In May 2023, Sycamore sold Stag's Leap Wine Cellars to their minority partner, the Antinori family. That move left Patz & Hall without shared administrative support for human resources, finance, or tasting room operations, which all stayed with Stag's Leap. It became clear to him then that the winery would either be absorbed into the Washington group or sold.
'I approached management and said, 'If you're selling, I'd like to throw my hat in the ring; and regardless, I'll stay on temporarily, to help with the transition,'' Hall says. After not hearing back for several months, the call came that the winery he had founded was indeed for sale, and he put together a small group of investors to buy it back. He had already started imagining retiring and slowing down to the point that he could just tend to his home vineyard and travel. 'I was stunned. I never let myself dream it could happen,' Hall says. 'But the chance to bring Patz & Hall home? That was too good to pass up. I still have trouble believing it's happened!'
Chris Hyde, second-generation grower at Hyde Vineyard in Carneros, whose family has worked with Hall for more than 25 years, is equally excited. 'What we value most is working with people who share our values and see the same future for the land and the grapes that we see,' he says. 'With James taking back control of Patz & Hall, we know exactly who we are working with and how decisions can get made.' Especially important to him is that Hall is 100 percent in the driver's seat and can make purchasing decisions in an instant without having to run it by anyone else. Hall believes that as long as he and the grower share the same vision, there is no need to own proprietary vineyards; he is comfortable with the long-term relationships he has nurtured during his time in the industry.
At first, Hall insists that nothing has really changed. 'The vineyard sources remain the same,' he says. 'The winemaking team is still here. The native yeasts in the cellar, the barrels we love, the techniques we trust, they're all unchanged.' However, with a little digging, he admits that everything feels different. 'What has changed is the energy,' he says. 'There's a renewed intensity and urgency in everything we do. It feels like we're playing for keeps now. Every decision matters—whether it's in the cellar, the tasting room, or the vineyard. We're not just making wine; we're building something lasting, something personal.'
It's clear that the 2022s from Patz & Hall—the first independent releases since the 2024 buyback—resonate with that renewed energy. Patz & Hall 2022 Hyde Vineyard Pinot Noir from Carneros has aromas of pomegranate, ripe summer cherry, and star anise. Vivid acidity bursts on the palate supporting flavors of Luxardo cherry, blackberry, licorice, and a hint of rosewater that wind down to a smooth finish. Patz & Hall 2022 Pisoni Vineyard Pinot Noir from Santa Lucia Highlands offers a bouquet of black cherry, brewed black tea, and a hint of spearmint. Smooth on the palate, it has fine grained tannins wrapped around bold flavors of raspberry, black plum, cocoa powder, and mint leaf. James Hall has a simple goal: 'To bring people joy, connection, and a deeper appreciation for what great vineyards and thoughtful winemaking can offer.' One sip is all you need to realize that he met that objective.
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