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14 WINES&VINES August 2017 WINE INDUSTRY NEWS PHOTOS: SOUTHERN: UNEX; PIERCE'S DISEASE: UNIVERSITY OF CALIFORNIA Far Niente acquires Napa Valley vineyard Far Niente Winery acquired a 60- acre Napa Valley Vineyard located in the Rutherford Bench. The vineyard is composed primarily of Cabernet Sauvignon grapes planted between 2009 to 2015. The vineyard will now be part of the Nickel & Nickel portfolio, Far Niente's sister company launched in 1997 to produce single-vineyard Cabernet Sauvignon and other varietal wines. The acquisition is the first for the San Francisco, Calif.-based firm GI Partners since the company purchased Far Niente in 2016. Got Wine gets Hidden Lake Winery in Illinois Stephen Gorzad, founder of the firm Got Wine, acquired Hidden Lake Winery in central Illinois, about 35 miles east of St. Louis, Mo. The 92-acre property includes a winery facility, five event venues, a banquet center and guest cab- ins. Gorzad, a former senior man- ager at Boeing, had been looking for a winery to purchase with his wife, Angela. The couple was able to complete the purchase with a loan from North Avenue Capital, which is a U.S. Department of Ag- riculture Rural Development lender, and announced in a news release that it was able to provide a $1.6 million loan to fund the acquisition. Silverado sells vineyard to investment group Silverado Investment Manage- ment Co. (SIMCO) sold the 900- acre Sweetwater Vineyard near King City, Calif., to "a large North American-based pension fund," according to Zepponi & Co., which served as financial advisor to SIMCO. The Sweetwater Vineyard deal closed June 28 and is one of a string of significant vineyard acquisitions in the wine industry in 2017. The vineyard is planted primarily to Pinot Noir, Cabernet Sauvignon and Chardonnay and has supplied several of California's largest wine companies. U.S. withdraws from climate change agreement U.S. president Donald Trump an- nounced his plan to withdraw the United States from the Paris climate agreement created to re- duce greenhouse gas emissions. Former U.S. president Barack Obama was one of 195 members to have signed the agreement at the 2015 United Nations Climate Change Conference. The Paris agreement made specific mention of "the particular vulnerabilities of food production systems to the adverse impacts of climate change." Beckstoffer buys Carneros vineyard Beckstoffer Vineyards purchased Beaulieu Vineyard No. 5, a 121- acre vineyard in the Carneros AVA, from Treasury Wine Estates for $14.3 million in June. Beckstof- fer owns the To Kalon Vineyard in Napa Valley as well as other vine- yard properties in Napa County that total more than 1,000 acres. The company also has large vine- yard holdings in Lake County and Mendocino County in California's North Coast. Beckstoffer's top varieties grown are Cabernet Sau- vignon, Merlot, Chardonnay, Pinot Noir and Sauvignon Blanc, accord- ing to Wines Vines Analytics. PD board increases grape assessment California grapegrowers will pay $1.50 per $1,000 of crop harvested in 2017 following a decision by the Pierce's Disease/Glassy-Winged Sharpshooter Board this June. The board increased the assess- ment by 25 cents in order to meet budget projections for the group overseen by the California Depart- ment of Food and Agriculture. In addition to Pierce's disease, fund- ing can be used to research red blotch-associated virus, grapevine leafroll disease, grapevine fanleaf virus and a variety of pests. Constellation paid $60 million for Schrader The purchase price for boutique Napa Valley Cabernet producer Schrader Cellars was $60 mil- lion, according to Wine Spectator. Earlier this summer Wines & Vines reported that Constellation Brands had acquired the Schrader brand, inventory and vineyard sourcing. The purchase price is remarkable for a deal that includes no wine- making space or vineyard property. Schrader produces 2,800 cases per year with an average bottle price of $225, according to Wines Vines Analytics. Winery investor Banks sentenced to prison Charles Banks, founder of Terroir Capital and co-owner of Mayacamas Vineyards, was sentenced to four years in prison after pleading guilty to fraud in his management of former NBA player Tim Duncan's finances. Banks already stepped down from his position as CEO of Terroir Capital, and the Schottenstein family who own Mayacamas with Banks want him to step down from his position at the winery as well. Michelin invests in The Wine Advocate The Michelin company behind the Michelin Guide series of books announced July 5 that it had ac- quired 40% of The Wine Advocate. In recent years The Wine Advocate has partnered with Michelin Guide to host tastings and wine dinners at Michelin-recommended res- taurants. Robert Parker founded The Wine Advocate in 1978 and in 2012 sold a majority stake in the publication to a group of investors from Singapore. Class-action lawsuit against distribution giant Attorneys for a San Jose, Calif., man filed a class-action lawsuit against Southern Glazer's Wine and Spirits, alleging representatives for the largest U.S. alcohol distributor billed clients for products they did not purchase in an attempt to meet sales quotas. The suit also alleges that Southern provided the plaintiff's liquor license number and Southern account number to third parties in order to allow them to purchase alcohol under the plaintiff's license, putting his business at risk. See page 15. LATEST NEWS More detail on the news at winesandvines.com Top Stories The month in perspective