Tuesday, December 23, 2008

Sebastiani sale for the best

Don't shed a tear for the sale of Sebastiani Vineyards and Winery. Sebastiani wines are more likely to continue to be good (I'm a fan) than they would have been if the winery was unsold.

Here's why: the dynamic branch of the Sebastiani family had already left the building, literally. Don Sebastiani left the company in 2001 to form his own eponymous company, which is one of the most energetic, creative companies in northern California. They make lots of wines you know, like Smoking Loon and Pepperwood Grove, and a host of smaller production wines you might not have encountered with crazy names like Used Automobile Parts.

Don Sebastiani, grandson of Sebastiani Vineyards founder Samuele Sebastiani, is an innovator who goes with his gut. I don't know why he left the family company seven years ago, but he didn't lose his shares in it and it seems clear from the San Francisco Chronicle story that he was a major force in engineering the sale.

Without Don running it, the company was under the nominal leadership of Mary Ann Sebastiani Cuneo and her husband. They were not dynamic leaders, but the winery has continued to make good wines because of its outstanding winemaker, Mark Lyon.

Lyon is an unabashed fan of new technology and new thinking. He makes ripe wines with great fruit that are easy to appreciate right now. He's creative and has a great palate. Yet what will serve him best in overseeing the transition in ownership are his political skills.

The buyers are not Heublein or Coca-Cola or even debt-stretched Constellation; instead, it's the rapidly expanding Foley Wine Group out of Santa Barbara County. So far, this group has shown a commitment to fine wine. It hasn't blown up the production levels of popular labels until they bear little connection to the founders' intent (i.e., Inglenook, or more recently Ravenswood.)

Like other businesses, unless they're blessed with the terroir of Domaine Romanee Conti (and even to some degree if they are), wineries need to keep moving forward. Cuneo wasn't able to marshall her family's support, and support of owners and management are needed for essentials like replacing expensive equipment.

Foley has money, apparently, and its leaders should be smart enough to keep Lyon on board. The Sebastiani family winery name is safer in Foley's hands.

Besides, it's not like there isn't still a family-owned winery named Sebastiani making some pretty good wines. That Used Automobile Parts Bordeaux-style blend is actually pretty good.

9 comments:

Anonymous said...

Thank God, they were not purchased by Bronco Wine Company, (Two Buck Chuck People).....they would have destroyed the brand, and it's History.

EuroMattsons said...

The changes keep coming. Let's all toast to embracing change and inspire others to move forward. http://www.toasttochange.com.

W. Blake Gray said...

Bronco's not into buying ongoing brands; they prefer to create their own. Charles Shaw was different, it was already defunct and Bronco bought it out of bankruptcy.

The Sebastianis are lucky in this business climate to have attracted an offer. Remember, Chateau Montelena's deal fell through not long ago.

Anonymous said...

You obviously have no understanding of the details of the Sebastiani/Cuneo management relationship. In the past 8 years, under the management of Mary Ann and Richard Cuneo and a stellar executive team, Sebastiani Vineyards and Winery has created the highest quality product in it's history and has become the most profitable that it has ever been.
I laugh at your ignorant assumptions about Don Sebastiani, his abilities and his company. He distributes a voluminous amount of poor quality wine and is personally and professionally drenched in debt.
If you knew anything about this situation you would know that the SF Chronicle article is a hideous and innacurate media spin.

W. Blake Gray said...

OK, enlighten me.

I agree with you that Sebastiani is making high quality wines in the last few years by limiting its portfolio and getting rid of the entry-level stuff.

It's a blog, not yours, and you're anonymous. Give us some details.

Anonymous said...

Rock on!

Markthewinemaker said...

Hi, I'm the winemaker. I'll update more as I come to know what the new owner wants.

W. Blake Gray said...

Mark, you are a mensch. Thanks for commenting.

johng said...

I agree that Sebastiani is making very good wine these days, and also that Don & Sons is an innovative marketing company that makes some drinkable wines. However anybody who purchases Don & Son wines should know that their drinking dollars help support Mr. Sebastiani's pet political projects. He has spent millions of dollars over the past few years in support of anti-choice ballot initiatives in California.