Premier wine group The Duckhorn Portfolio has acquired Sonoma-Cutrer Vineyards from Brown-Forman in a transaction that will result in Brown-Forman receiving UD$50 million and a 21.5 percent ownership interest in The Duckhorn Portfolio.
Lawson Whiting, President and Chief Executive Officer of Brown-Forman Corporation, is confident that the deal will be beneficial to all parties involved.
“The Duckhorn Portfolio has a strong reputation for producing and marketing some of the world’s finest wines. Their understanding of the wine consumer, combined with a strong and diverse route to market, gives Brown-Forman great confidence that Sonoma-Cutrer will continue to grow and thrive as part of the larger Duckhorn portfolio,” said Whiting.
“The addition of Sonoma-Cutrer to the Duckhorn portfolio will enhance one of the most respected wine portfolios in the industry. In addition, we believe an equity interest in the Duckhorn portfolio will be a valuable investment for Brown-Forman, allowing us to maintain a presence in the wine category while focusing our resources on building our premium and super-premium spirits brands,” Whiting added.
Under the terms of the agreement, The Duckhorn Portfolio will assume ownership of the Sonoma-Cutrer brand trademarks, facilities and six vineyards. The transaction is expected to close in the last quarter of FY24, at which time Brown-Forman will receive two seats on The Duckhorn Portfolio’s board of directors.
Deirdre Mahlan, Interim President, Chief Executive Officer and Chairperson of The Duckhorn Portfolio, is also pleased with the transaction.
“Sonoma-Cutrer has a long history of excellence in producing fine wines and will be an outstanding addition to our portfolio of luxury wines. We are fortunate to welcome Brown-Forman, a historic industry leader, as a long-term shareholder and look forward to their representation on our board,” said Mahlan.
Since its entry into the winemaking world in 1981, Sonoma-Cutrer has established itself as one of California’s most recognized Chardonnay brands. Brown-Forman acquired the brand and its vineyards in 1999, and Sonoma-Cutrer is now the third largest luxury Chardonnay brand in the United States.
