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14 WINES&VINES January 2018 WINE INDUSTRY NEWS LVMH takes stake in Colgin The French firm LVMH Moet Hen- nessy Louis Vuitton is acquiring a 60% stake in Napa Valley Winery Colgin Cellars from owners Ann Colgin and Joe Wender, who will retain 40% of the company and their leadership roles along with chief operations officer Paul Rob- erts and winemaker Allison Tauz- iet. The luxury goods and wine and spirits company already owns Newton Vineyard and Domaine Chandon in Napa Valley as well as Chateau d'Yquem, Chateau Che- val Blanc, Veuve Clicquot and sev- eral other wineries in France and around the world. Republic National and Breakthru to merge The second- and third-largest alcohol distribution companies— Republic National Distributing and Breakthru Beverage Group—an- nounced a merger Nov. 20. The deal will scale up the new com- pany to a size more comparable to industry leader Southern Glazer's and will cover nearly as many state markets. Republic National (RNDC), a distributor and broker of premium wine and spirits based in Grand Prairie, Texas, represents 7 5 1 U . S . w i n e r i e s . B re a k t h r u , based in both New York and Illi- nois, is a distributor and broker of beer, wine and spirits in the U.S. and Canada, representing 691 U.S. wineries, according to Wines Vines Analytics. After accounting for overlaps, the new entity is ex- pected to serve 30 states, includ- ing nearly all the largest markets except California. TTB approves Petaluma Gap AVA The U.S. Alcohol and Tobacco Tax and Trade Bureau approved the Petaluma Gap as the country's newest American Viticultural Area (AVA). About 2,000 acres of vine- yard are farmed in the boundaries of the new AVA (outlined in red), where most fruit was previously labeled under the Sonoma Coast designation. The area has a grow- ing reputation for outstanding Pinot Noir and Chardonnay. Members of the Petaluma Gap Winegrowers Al- liance began taking steps toward AVA designation in 2014 and sub- mitted their application to the TTB in February 2015. Winemaker Doug Cover had been involved in writing environmental impact studies and created the proposal. Arterra buys Laughing Stock Vineyards Laughing Stock Vineyards of Pent- icton, B.C., will join Arterra Wines Canada Inc. in the Ontario-based company's first deal since Ontario Teachers' Pension Plan (OTPP) acquired Constellation Brands Canada's winemaking operations in a $1 billion deal (CAD) one year ago. Laughing Stock is a venture of David and Cynthia Enns on the Naramata Bench in the south- ern Okanagan Valley. It produces slightly less than 10,000 cases of wine today from 40 acres of owned and leased vineyard. The share-purchase agreement will see Laughing Stock continue operating as a wholly-owned subsidiary of Ar- terra under the Enns' management. Investment group buys Sullivan Vineyards A group of investors called VITE USA and led by Juan Pablo Torres- Padilla has reached an agreement to acquire Sullivan Vineyards in Napa Valley. The winery had de- clared bankruptcy earlier this year because of an acrimonious divorce and ensuing lawsuits. In a state- ment announcing the acquisition, VITE USA said it plans to "focus on enhancing the prestige of this unique property" through "signifi- cant" investment in the vineyards, winemaking and hospitality. The transaction is planned to close in early 2018. Ross Sullivan will remain with the winery as a consultant, and Jeff Cole will remain winemaker. Southern to acquire Oklahoma firm Southern Glazer's Wine & Spirits an- nounced a joint venture with Jarboe Sales Co. in Oklahoma. The agree- ment creates an integrated wine, spirits and beer wholesaling opera- tion serving the state of Oklahoma and operating as Southern Glazer's Wine & Spirits of Oklahoma. Accord- ing to a statement by Southern, the deal should close Oct. 1, 2018, to coincide with changes in state law that will allow grocery stores and convenience stores to sell wine and full-strength beer. The new company will serve more than 3,700 accounts in the state out of a new distribution facility in Tulsa, Okla. Vintage gobbles up Layer Cake Vintage Wine Estates in Santa Rosa, Calif., is acquir- ing the Layer Cake, Cherry Pie and If You See Kay wine brands from vintner Jayson Woodbridge, who launched all three brands that have grown into a portfolio of more than 450,000 cases per year. Layer Cake debuted in 2004 and was comprised of nine varietals priced between $10 and $15 per bottle. Woodbridge will serve as a consul- tant for both winemak- ing and public relations. WX buys Jelly Jar Jelly Jar Wines, a brand founded in 2008 by Napa Valley vintner Andy Pestoni and his wife, Shannon, is the latest addition to Novato, Calif.-based WX Brands' portfolio of wines. WX Brands is a private- label wine company that produces more than 80 wine, beer and spir- its brands for retailers and owns the national brands Bread & Butter Wines, Jamieson Ranch Vineyards and Chronic Cellars. The Jelly Jar label includes a Zinfandel and a red wine blend. Thomas Fire poses second fiery threat to wine industry Less than two months after a firestorm ter- rorized Northern Cal- ifornia, claiming the homes of workers at all levels of the wine industry, a second spate of fires erupted in the southern half of the state. Fueled by quick-moving, dry winds, the Thomas Fire grew to become the third-largest wild- fire in California history, claiming more than 270,000 acres in Santa Bar- bara and Ventura counties. According to one climate scientist, growing populations mean humans will be living closer to such disasters in wild lands. See page 15. LATEST NEWS More detail on the news at winesandvines.com. Top Stories The month in perspective Colgin Cellars