April 12, 2018

Food and agribusiness-focused investment firm AGR Partners has made a capital investment in Vintage Wine Estates in exchange for a minority stake in the company.

Founded in 2008 when Napa Valley Girard Winery owner Pat Roney acquired Sonoma’s Windsor Vineyards, Vintage Wine Estates has grown into a collection of wineries and estates producing approximately 2 million cases of wine per year.

“We are excited to partner with Pat Roney and the Vintage Wine Estates team to support their growth plans. We look to make long-term investments to support best in class businesses with great partners; our investment in Vintage Wine Estates aligns closely with this goal,”  said Ejnar Knudsen, CEO of AGR Partners, and upcoming speaker at GAI NY 2018.

Selling through various channels including direct-consumer, wholesale, wine clubs, e-commerce, television sales, and tasting rooms, Vintage Wine Estates’ extensive portfolio includes Clos Pegase Winery, Cosentino Winery, Girard Winery, B.R. Cohn Winery, Swanson Vineyards, Viansa Sonoma, Windsor Vineyards, Cameron Hughes, Firesteed, Sonoma Coast Vineyards, Clayhouse, Tamarack Cellars, Cherry Pie, Splinter Group Spirits, Middle Sister, Bar Dog, Girl & Dragon, Purple Cowboy, and a range of exclusive wine brands including its latest acquisition, Layer Cake.

Added to the Vintage Wine Estates portfolio only months ago, in December 2017, Layer Cake was acquired along with the If You See Kay wine brand from One True Vine for an undisclosed amount.

“In partnership with Vintage Wine Estates president Pat Roney and his team, we’ll drive existing and new items as part of our mission to grow the brand,” said Peter Deutsch, CEO of Deutsch Family Wine & Spirits, a partner of Vintage Wine Estates that will oversee sales and marketing for the Layer Cake brand.

Buyer Not a Seller

The investment in Vintage Wine Estates, which totaled $75 million, and was backed by AGR Partners and existing investors in the company, will be earmarked to be used to fund future winery and brand acquisitions, and production efficiencies related to an expanding portfolio of businesses and brands. Along with Layer Cake and If You See Kay, other recent acquisitions made by Vintage Estates include Tamarack Cellars in Washington State, Firesteed Vineyards in Oregon.

The announcement of the $75 million in funding also puts to rest industry rumors labeling Vintage Wine Estates as a possible acquisition target for Treasury Wine Estates.

In a statement negating such rumors, Shanken News reports that Vintage Wine Estates announced that it “is neither seeking nor engaging in any sale conversations,” adding, “We’re actively looking for additional acquisitions as we continue to drive our rapid growth plans.”

Pairing with AGR Partners

AGR Partners has had a dynamic few years. In May 2016 the firm announced the move of its headquarters to Davis, California, in order to gain an advantage of proximity to the food and ag hub surrounding the University of California Davis.

At the time, the firm also announced the expansion of its Advisory Board Team, adding two new members – Douglas R. Circle and Richard T. Crowder. The two new members will be joining Duane “Butch” Fischer and Dan O’Neill who were named to the board earlier that year.

Although headquartered in California, AGR’s team has a worldwide presence, living and working in agribusiness and adding value through its expertise, network of relationships, and industry experience.

Working within the four pillars of opportunity, expertise, partnership, and patience, over the past four years AGR Partners has invested more than $280 million in eight companies along the food value chain including Vintage Wine Estates. The firm’s other portfolio companies include: Icicle Seafoods, one of the largest and most diversified companies of its kind in North America; Almark Foods, a leading provider of hard-boiled and peeled eggs; Tru-Test Group, a global dairy and livestock equipment manufacturer; 3D Corporate Solutions, a leading pet food ingredient provider; SEMO Milling, a producer of human grade corn milling products; Opal Foods, a producer of generic and specialty eggs; and Ridley Corporation, Australia’s leading producer of animal feed for the dairy, poultry, swine, sheep, beef, and aquaculture industries.

-Lynda Kiernan