Latest news with #DuckhornPortfolio
San Francisco Chronicle
09-05-2025
- Business
- San Francisco Chronicle
Duckhorn discontinued this classic Napa wine brand. What will happen to its flashy new tasting room?
This week, the Duckhorn Portfolio announced plans to phase out several wine brands, including Paraduxx. But the timing couldn't have been worse for the 30-year-old Napa Valley winery: Paraduxx was set to reveal a major, multi-year renovation of its tasting room in June. The news has ignited uncertainty over the future of Paraduxx's tasting room and winery, which sits on some of the most premium Cabernet Sauvignon land in Napa Valley. While Duckhorn said it will close three tasting rooms next month — Migration in Napa, Sonoma-Cutrer in Windsor and another in Washington — Paraduxx was not on the list. Paraduxx has been working on its luxe and modern transformation — complete with a massive new patio — for years. In 2020, Napa County approved the winery's proposal to increase its annual production capacity by 50%, increase annual winery visitation by 87% and remodel its hospitality spaces. But last fall, just as Paraduxx was hitting the final stretch of construction, Duckhorn sold to private equity firm Butterfly Equity. Once the winery revamp wraps up next month, the tasting room will continue to host tastings of Paraduxx; even though it has stopped producing wine, it needs to move through its remaining inventory. But the space will also offer visitors add-on tastings of Duckhorn's Pinot Noir stalwarts: Anderson Valley's Goldeneye, Central Coast Pinot Noir legend Calera and Sonoma's Kosta Browne. In a statement to the Chronicle, the company said this will 'enable club members and fans of our wineries to experience more of the wines that they love at one of Napa Valley's premier winery locations.' A much bigger change will take place later. In 2026, timed with Duckhorn Vineyards' 50th anniversary, the company will close its storied Lodi Lane tasting room in St. Helena for a year-long renovation. Paraduxx will become the new hub for Duckhorn Vineyards visits; when the Lodi Lane tasting room reopens in 2027, it will host higher-end Duckhorn tastings and events while the Paraduxx site will focus on more casual, entry-level options. The Paraduxx estate will continue to offer tastings of Duckhorn's other brands. Paraduxx was a radical concept when Duckhorn founders Dan and Margaret Duckhorn launched it in 1994. Focused on unconventional blends — crossing Bordeaux varieties like Cabernet Sauvignon with outsiders like Zinfandel — it represented the experimental nature of Napa Valley compared to its Old World counterparts. In 2000, winemaker Dave Phinney took a similar approach with his edgy wine brand the Prisoner, crafting an unusual blend of mostly Zinfandel and Cabernet, just like Paraduxx's flagship. But while the Prisoner took off, selling to Constellation Brands for roughly $285 million in 2016, Paraduxx never fully broke out of Duckhorn's shadow. The winery, alongside several other brands Duckhorn will phase out, was 'underperforming' and accounted for just 3.9% of Duckhorn's gross profit, the company said. Paraduxx is set on Duckhorn's famed Rector Creek Vineyard, just north of Yountville and right off the Silverado Trail. 'It's a spectacular piece of dirt. That ground is some of the most hallowed ground for Cabernet in the world,' said Tony Biagi, Paraduxx's founding winemaker, who left the winery in 2001. 'It has the same dirt as Screaming Eagle,' he added, referring to Paraduxx's neighbor and one of Napa Valley's most noted cult Cabernet brands. Some Rector Creek grapes are used in Duckhorn's highest-end wines. 'There was always a fight in-house for them,' Biagi said. 'The winemaker at Duckhorn and I would fight over who got the blocks.'
San Francisco Chronicle
07-05-2025
- Business
- San Francisco Chronicle
Napa Valley wine giant to close tasting rooms and consolidate its brands
The Duckhorn Portfolio, one of Napa Valley's most prominent wine companies, is closing two Wine Country tasting rooms and consolidating its portfolio to focus on its four most successful labels. The Migration tasting room in Napa and one of Sonoma County's most classic wineries, Sonoma-Cutrer, in Windsor will close in June, though the latter winery will continue sales through wholesale and a wine club. The news, first reported by the Northwest Wine Report, comes roughly six months after Duckhorn sold to private equity firm Butterfly Equity in an all-cash deal that values the business at $1.95 billion. The company announced Tuesday that it will concentrate investments on Duckhorn Vineyards, Kosta Browne, Decoy and Sonoma-Cutrer, along with Goldeneye, Calera, and Greenwing. These brands now account for 96% of Duckhorn's total sales. 'We see tremendous potential for our core four wineries,' CEO Robert Hanson said in the press release. 'As we continue to execute our strategic priorities, we consistently evaluate our portfolio to ensure it is well-positioned to expand and profitably scale.' Duckhorn did not immediately respond to the Chronicle's request for comment Tuesday night. Those core wineries operate in the $15-50 premium and luxury wine category, which has grown approximately 7% over the past 12 years, the company added. Over the last 24 months, the Duckhorn Portfolio has accounted for 37% of the growth in this segment and continues to expand its market share. As part of the new direction, Duckhorn will reduce resources dedicated to underperforming brands like Canvasback, Migration, Paraduxx and Postmark. It said the brands together account for only 3.9% of Duckhorn's gross profit. Duckhorn, whose flagship St. Helena winery is one of the best-known names in Napa Valley, has been through many ownership changes in recent years. Founded in 1976 by Dan and Margaret Duckhorn, it became known for favoring Merlot, a grape variety that many of their counterparts in Napa Valley only used for a minor part of a Cabernet Sauvignon-based blend. The business steadily grew as the Duckhorns acquired hundreds of acres of vineyards and introduced a series of waterfowl-themed spinoff brands. In 2021, the company went public, but the Butterfly deal brought it back under private ownership. Duckhorn is not the first major wine company to announce a shakeup in 2025 as the wine industry downturn worsens. In April, Constellation Brands offloaded its low-tier wine brands to the Wine Group and Jackson Family Wines confirmed layoffs. Lawrence Wine Estates recently laid off its three-person Haynes Vineyard production staff and has consolidated much of its production. Several other Wine Country tasting rooms have closed this year, including Napa's Twomey. The company said it will close tasting rooms 'that are not generating significant revenue or contributing to profitability.'
