Vineyard valuations are on the rise with a dramatic wave of private capital and mergers & acquisitions
Wine deal making is undoubtedly surging and investors are increasingly betting on rising prices for vineyard acreage.
California has the most vineyards for sale in the country with 100,000 acres of vineyards available for a combined value of nearly a half-billion dollars, per the Western Farm Press.
According to the Wall Street Journal, deals by private-equity funds to invest in wineries, vineyards, and distributors have risen 75% in 2021 so far, compared with last year.
Vineyard valuations are increasingly defined by investors’ expectations of what they could sell a property for in a few short years, as opposed to the money they generate producing wine.
There's been quite a significant spike in mergers and acquisitions as well, with companies spending $8.1 billion to secure wine-related firms this year, compared with under $2 billion last year.
This remarkable level of growth hasn't been seen for well over a decade.
California’s Central Coast is home to 920 wineries that produce over 11 million cases annually, accounting for more than 20% of the tonnage of grapes produced across the state each year.
According to Jenny Henizen, this established region is ripe for institutional investors. In fact, she recently outlined the biggest takeaways in the Western Farm Press.
“Despite the stresses of 2020, we’ve seen a significant upswing in demand for vineyard acreage and wineries and I saw encouraging signs of active grape buying during harvest. The wine industry sees growth through innovation and renewal and this is especially evident with the current robust vineyard sales activity.”
"There was a big planting boom in the 1990s and a lot of those vineyards are of the age where they need to be replanted, so it’s redevelopment time, a kind of replanting or selling opportunity for a lot of people. It’s an exciting time to see the next generation come forth and carry the industry on its next journey.”
Vineyard Industry News to Know
In July of 2020, Booker Wines brought in Constellation Brands as a valued investor. Booker Vineyard founder and winemaker Eric Jensen is preparing for a profitable future. He shares, “I couldn’t be more excited. Together with Constellation, we’re going to bring the best wines from Paso Robles to American consumers while flipping the traditional fine wine experience on its head."
Are you a savvy investor seeking an institutional-grade vineyard?
Jenny Heinzen is California's #1 Vineyard Real Estate expert. Seasoned at serving institutional investors, recent Central Coast real estate highlights include:
- Successfully selling the former Red Cedar Vineyard in Paso Robles AVA, an established vineyard with extensive infrastructure and over 1,000 vineyard acres with additional plantable land to a motivated institutional investor.
- Effectively selling Joseph Vineyard, located in south Monterey County, to an institutional investor. At approximately 1,200 acres with 421 vineyard acres and additional vineyard land with exceptional water quality (and quantity), both seller and buyer are thrilled with the transaction.
Looking Ahead
Here on California's Central Coast, perfectly situated between Los Angeles and San Francisco, there are two big name wineries under contract to be sold to prestigious companies outside the area. These deals will be announced at the start of 2022 (or earlier!).
The Proven Vineyard Real Estate Expert for Institutional Investors
Jenny Heinzen Real Estate specializes in serving institutional investors, wineries, growers, and high-net-worth individuals with a trusted talent for exceptional client care.
- Jenny's average listing last year sold for $6.6 million with the highest transaction logged in at $17 million.
- Competition is so fierce that one of the Paso Robles deals, a winery-vineyard, closed in record time of only two weeks.
- She sold a record 5,233 acres of vineyard and winery properties in Monterey, San Luis Obispo, and Santa Barbara counties in 2020.
If you're looking for an experienced vineyard real estate expert to guide you through the process of purchasing the ideal institutional-grade vineyard for your portfolio, you're exactly where you need to be.
Are you a discerning investor?
Connect with Jenny today.
(805)434-2044
Vineyard Real Estate Broker Lic# 01436553
