Photo: Beaufort founders Susan and Jeff Vandermolen
Beaufort Vineyard and Estate Winery in Courtenay is the second winery within a week to announce it soon will have new ownership.
The first, announced last Friday, was CedarCreek Estate Winery of Kelowna which is being acquired by Mission Hill proprietor Anthony von Mandl.
Is this the beginning of industry consolidation? Time will tell. At least a dozen other wineries are listed for sale. One industry insider has been quoted saying that 26 wineries are for sale – one in ten of B.C.’s licensed producers.
Some have been on the market for several years. That may suggest that B.C. wineries may be priced too aggressively. It may also indicate that potential buyers are deterred by the surplus of B.C. wine that is just becoming apparent.
Beaufort was opened in 2008 by Susan and Jeff Vandermolen, a talented couple who levered previous careers in the oil industry into opportunities to see the world. Picking grapes in the Loire in 1991 fired their interest in wine. That interest was consummated in 2005 when they bought an 84-acre farm north of Courtenay. After preparing the land, they planted 7.5 acres of grapes in 2007 (and they have added to that since).
Using both their own grapes and grapes purchased in the Okanagan, Susan and Jeff quickly made a name for themselves with award-winning wines.
Born in 1958 and 1959, Susan and Jeff are young enough for other adventures (they once piloted a sailboat across the Atlantic ). That appears the motivation for putting Beaufort on the market, although they will continue to live in the Comox Valley
The new owners are expected to be disclosed when the transaction closes on February 6. Susan and Jeff have assured Beaufort customers that “it will be business as usual, as we have personally committed to assisting the new owners through the transition period, including the next harvest and vintage.”
What is remarkable about the Beaumont and CedarCreek announcements is that they put the spotlight on the gap between the large number of wineries for sale and the small number that actually have sold.
One 2013 transaction of which I am aware was the decision of Bordeaux ’s Groupe Taillan to consolidate its ownership of Osoyoos Larose by buying the 50% owned by Constellation Brands, its former partner.
The other was the ownership transition at Oliver Twist Winery, with Gina and Trevor Mitchell taking over from the winery’s founders, Denise and Bruce Hagerman. The Hagermans structured the sale in a way that made it affordable for the youthful Mitchells. Winery owners having trouble selling might consult with the Hagermans.
A search of the internet shows these B.C. wineries are listed for sale:
- Bonitas Winery at Summerland has been on the market for two or three years, originally at $8,888,000. It comes with eight acres of vineyard, a winery with a restaurant, an executive home and private waterfront on
- Castoro de Oro Estate Winery, a highway-side winery midway between Oliver and Osoyoos with a mature seven-acre vineyard. It is listed for $2.5 million.
- 40 Knots Winery in Comox. This winery, which is on a 23.5-acre property with a large vineyard, opened in 2011. Owner Bill Montgomery has it listed for $4,900,000.
- Glenterra Vineyards in the
- Herder Winery & Vineyards near Keremeos. This winery, on the market after the partnership dissolved, comes with nine acres of vines, a house with a winery in the basement and solid reputation. It is listed for $3.5 million.
- Hidden Chapel Winery near Oliver is also on the market after one of the partners left the business. The winery comes with 3.5 acres of Cabernet Sauvignon and a charming wedding chapel. Listed price: $1,590,000.
- Marichel Vineyard is a Syrah and Viognier producer that opened on
- Mistaken Identity Vineyard, one of three
- The Rise Cellars in
- Sonoran Estate Winery has been on the market because the founders, Arjan and Ada Smits, would like to retire. They own three properties, one of which was already listed in 2009. It comes with a 4.5 acre vineyard, a winery building, a nine-bedroom home and private frontage on
- Tangled Vines Estate Winery near
- The Vibrant Vine in
This is hardly an exhaustive list. I am aware of others that are for sale. These are often struggling wineries that opened for romantic reasons at a time when there was far less competition. Now, they have become salvage jobs. It is, I suppose, all part of the evolution of the business.