Drink up!!!
Crimson Wine Group acquires Central Coast’s Domaine Alfred winery
San Francisco Business Times - by Chris Rauber
Crimson Wine Group, a new unit of New York investment group Leucadia National Corp., hopes to complete the acquisition of Domaine Alfred Winery, an Edna Valley producer that specializes in high-end pinot noir and chardonnay, by Thursday, Aug. 28, officials said Monday.
Erle Martin, Crimson’s president and CEO, said the Napa-based wine group, which specializes in luxury wines, expects to close the deal this week, acquiring the San Luis Obispo winery and its highly regarded Chamisal vineyard. The seller is Domaine Alfred owner and founder Terry Speizer, both sides of the deal confirmed.
Martin declined to disclose the deal’s purchase price or how much publicly traded Leucadia (NYSE: LUK) is investing in Crimson. “We see a potential to add value, but I can’t quantify that,” he said. “We tend to keep a low profile,” referring to both Crimson and parent Leucadia.
Crimson was formed a year ago, in August 2007, according to Martin. Domaine Alfred produced its first vintage in 1998. The then-dormant vineyard was acquired by Speizer in 1994, according to the winery’s web site.
Assuming the deal goes through as planned, The Crimson Wine Group would include Domaine Alfred; Pine Ridge Vineyards, located in Napa’s Stags Leap District; Archery Summit Winery, in Oregon’s Dundee Hills; and Double Canyon Vineyards, a new winery in eastern Washington’s Horse Heaven Hills that will release its first vintage in the fall of 2009.
“In addition to its rich history, the vineyard has been consistently producing outstanding wines under the guidance of winemaker Fintan du Fresne,” Martin said in an Aug. 25 statement. The Chamisal vineyard was the first planted in 1972, then replanted in 1996 with six pinot noir clones, five chardonnay clones, and several classic Rhone varieties including Grenache and Syrah. The core Domaine Alfred wines are priced from $24 to $60 a bottle, according to Crimson.
Linda Parker, a spokeswoman for the Crimson Wine Group, said Domaine Alfred produced 24,000 cases last year. A spokeswoman for the Edna Valley winery said Monday that Speizer wasn’t immediately available to answer questions, but confirmed that the deal with Crimson Wine Group is under way.
