Wines & Vines

July 2016 Technology Issue

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16 WINES&VINES July 2016 WINE INDUSTRY NEWS 145 Jordan Street • San Rafael, CA 94901 • 415-457-3955 • Fax 457-0304 • www.boswellcompany.com N apa, Calif.—As expected after its $552 million purchase of the ma- jority of spirits giant Diageo's wine business in October, Treasury Wine Estates (TWE) is consolidating production of those brands with its existing brands. TWE's most significant moves are to con- solidate much of its luxury wine production (bottles that sell for more than $20 retail) at the Beringer Vineyards facility on Pratt Av- enue in St. Helena, Calif., and most "masstige" brands (bottles selling for $10-$20 retail) at the facility in Paso Robles, Calif., that was once Meridian Winery. However, TWE will continue to make top- tier labels Beaulieu Vineyard and Sterling Vineyards at those wineries and maintain winemaking at three other luxury producers in Napa Valley. TWE now has two wineries at the Sterling property located south of Calistoga, Calif. One, which is very popular with visitors, is at the top of its knoll. The other is little noticed and at the bottom of the sweeping hill. Cur- rently they make the reserve wines at the bottom and all others at the top of the hill. The new plan will transfer production of the very highest level wines like Platinum and Iridium to the top of the hill and make a multi- million-dollar investment to modernize the winemaking facility. Spokesperson Megghen Driscol said, "Not only will this increase quality, but it will make for a better experience for consumers who take the self-guided tour at Sterling." All other Sterling luxury winemaking will be moved to the Pratt Avenue winery. As at Sterling, the company is investing several million dollars in the Beaulieu Vineyard (BV) winery in Rutherford to modernize and make best-in-class wines with an emphasis on the high-end reserve winemaking. These up- grades will allow the winemaker to make Georges deLatour, Tapestry and a select few direct-to-consumer-only wines onsite at BV. All other luxury BV winemaking will be moved to the Pratt Avenue winery. Also in Napa Valley, the company will con- tinue producing the high-end wines Étude, Stags' Leap and Provenance at their existing facilities. In another significant move, the company will discontinue winemaking at Chateau St. Jean winery in Sonoma County and transfer production to Beringer in St. Helena. All hospitality and direct-to-consumer functions remain at the site. This is similar to the situation at St. Clement Vineyards in Napa TOP STORY Treasury Consolidates and Sells Wineries "This will allow us to not only take advantage of scale and efficiency but will give our team a state-of-the-art luxury winery to make their wines in." —Megghen Driscoll, VP of public relations, Treasury Wine Estates

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