Duckhorn says the move improves its position as “a leading luxury ($15+ per bottle) wine company in the U.S., while rounding out its portfolio by significantly elevating the Company’s position within Chardonnay, the number one domestic white varietal, in which The Duckhorn Portfolio lacks a meaningful presence today.” Sonoma-Cutrer had sales of $84 million in the 12 months through July.
According to Impact Databank, Sonoma-Cutrer had volume of 543,000 cases last year, up 17% from the previous year, placing it among the fastest growing wine brands in the U.S. market.
Under the terms of the deal, Brown-Forman will receive 31.5 million shares of Duckhorn’s common stock, valued at approximately $350 million, as well as $50 million in cash, and will nominate two directors to Duckhorn’s board.