Chris Mercer and William Kelley explain the recent sale of Schrader Cellars to Constellation (owner of Robert Mondavi winery) in Decanter Magazine. Changing tastes and aging vintners are altering the market for brands, wine and vineyards in America.
It’s a deal that raised a few eyebrows across California, but it fits with a clear acquisition trend in the US wine sector, according to Rob McMillan, executive vice president and founder of the Silicon Valley Bank’s wine division, based in St. Helena.
‘The mergers and acquisitions market for wine properties is wide open in the US,’ McMillan told.
‘Part of it has to do with an ageing first generation of vintners, such as the case [with Schrader]. The other part that makes the market hot is the premiumisation of wine and the secular move away from generic wines to premium wines. The US consumer wants wines that are better and they are willing to pay for them.’
Fred Schrader said of his deal to sell to Constellation, ‘There was no question in my mind that they would be the perfect steward of Schrader moving forward.’
Read more here.