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THE DUCKHORN PORTFOLIO:
LONGWINDS
VINEYARD

“As we at Duckhorn were evaluating a shifting industry landscape, Erik and his team at Metis were instrumental in helping us understand the opportunities and possible outcomes of our footprint in Washington. Metis helped us achieve a very successful result with our Longwinds Vineyard on Red Mountain - pairing us with a foundational Washington producer in the deal and negotiating a rapid and mutually agreeable transaction in a very tough market. The extensive knowledge, network, and capabilities of Metis allowed us to achieve the best possible outcome given the circumstances, and for that, I am very grateful.”

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- PJ Alviso, Vice President Winegrowing, The Duckhorn Portfolio

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CLIENT
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The Duckhorn Portfolio stands as one of America's premier luxury wine companies, with a distinguished portfolio spanning over four decades. Founded in 1978 by Dan and Margaret Duckhorn, the company has built an exceptional collection of brands, including Duckhorn Vineyards, Paraduxx, Goldeneye, Migration, Decoy, Calera, Kosta Browne, Greenwing, Postmark, and Canvasback. The company has earned recognition for its expertise in premium viticulture and winemaking across multiple prestigious appellations.

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Within their Washington State operations, The Duckhorn Portfolio developed Longwinds Vineyard, a pristine vineyard in the Red Mountain AVA. The vineyard is strategically positioned within Red Mountain's elite 4,040-acre sub-appellation, representing an ancient anticline formation that has become the Pacific Northwest's most prestigious region for Bordeaux varietals. Not just one of the highest quality, Red Mountain is also one of the smallest AVAs in Washington and consistently commands the highest prices for both vineyard land and grapes in the state.

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Established in 2014 under renowned vineyard manager Dick Boushey and developed in partnership with The Duckhorn Portfolio team, this 20-acre estate features 16.77 acres planted to premium Bordeaux varietals at 1,100 feet elevation on a southwest-facing slope, creating optimal sun and wind exposure. The vineyard is strategically located between Antinori's Col Solare and Force Majeure vineyards. Red Mountain's intense sun exposure, combined with the protective airflow from the Yakima River and its thin soils, enables precise irrigation management, resulting in the concentrated fruit quality for which the region is celebrated for.

CHALLENGE
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The Duckhorn Portfolio's strategic decision to wind down its Canvasback operation created a unique opportunity to divest Longwinds Vineyard, which had served as the brand's estate vineyard and backbone of its Washington winemaking program. The challenge was to sell an ultra-premium vineyard on a short timeline in an extremely challenging market for both vineyard and grape sales. 

PROCESS
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Metis recognized that Longwinds was a unique vineyard opportunity that could demand interest from buyers in an otherwise volatile market. It is perhaps the cleanest and highest quality vineyard ever to come available for sale on Red Mountain and was available to be acquired without any ancillary assets such as homes, winery facilities, brand, or inventory. It is also relatively small, at only 20 acres, with about 17 planted. This is the exact type of vineyard that dozens of buyers had expressed interest to Metis about in the past, though nothing so clean had yet to become available. With the market for grapes and vineyards in Washington State severely distressed at this time, Metis had to demonstrate how rare an opportunity to buy a vineyard of this size and quality was in the tiny Red Mountain AVA and convince buyers to act at a time when few are acting.

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Due to the size and quality of the vineyard, as well as the weakness of the current grape market, Metis knew the right buyer was going to be a winery for whom Longwinds would become a key estate vineyard for a luxury tier program.

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Metis designed and executed a confidential marketing process that targeted these winery types only. Part of that process was establishing a transaction timeline, informing those interested how quickly they needed to move with the impending 2025 harvest, as well as guidance on offer and the diligence process. Prior to contacting buyers, Metis worked with the Duckhorn team and other third-party providers to pre-diligence the vineyard, populating a data room with virtually all technical, financial, operational, and viticultural information that a buyer would request. This was to ensure that buyers could pre-diligence the vineyard before tendering offers, and the due diligence window between accepted offer and closing would be very short. Once this was complete, Metis completed a detailed confidential information memorandum on the opportunity and began approaching the parties it identified as potentially having interest. 

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Metis opted for a structured auction process. In challenging markets, like today, an auction process can be a risky choice. Still, given the pristine nature of the vineyards, Metis was confident that it was the right strategy for a time-sensitive closing.

OUTCOME
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The process generated significant interest, resulting in over fifteen interested parties, six buyers submitting bids, and ultimately Quilceda Creeks’ offer being selected. Quilceda Creek was excited to immediately integrate the vineyard into their estate winemaking program and took over farming responsibilities nearly immediately. 100% of the 2025 crop will go into their production. 

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Quilceda Creek is an optimal steward as Washington State's benchmark Cabernet Sauvignon producer, having achieved the historic distinction of producing the first Washington wine to receive 100 points from Robert Parker Jr.'s The Wine Advocate. The winery has since accumulated over 30 perfect scores from various wine publications, demonstrating its commitment to excellence and proven track record with Red Mountain fruit.

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The proximity to Quilceda Creek's famed Galitzine Vineyard (2/3 of a mile away) creates operational efficiencies while adding fruit with higher tannin and acid levels, providing winemaker Paul Golitzin with additional components for creating complex, long-lived wines. This strategic acquisition strengthens Quilceda Creek's position in one of Washington's most prestigious wine appellations, aligning with the long-term goal of becoming an entirely estate model.

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The transaction demonstrates successful vineyard consolidation within premium appellations, where operational synergies and quality enhancement drive strategic value. The successful completion exemplifies Metis's ability to navigate complex market conditions while achieving optimal outcomes for both seller and buyer in the ultra-premium wine segment, while ensuring that exceptional terroir continues under the stewardship of producers committed to the highest standards of winemaking excellence.

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Ultimately, the process produced an ideal buyer match, an on-time closing prior to harvest, and a very strong valuation for Metis’ client – each testament to the value of proper buyer identification, thorough preparation, and a disciplined process. 

©2024 Metis LLC

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