The Paso Robles wine region is significantly on the rise. Now here’s what savvy investors and stakeholders need to keep in mind.
Premiumization
Demand for Paso Robles wines is up and the trend shows no sign of slowing down. The science of motivating consumers to pay more for brands and products, premiumization is positively impacting our local wine industry—particularly in Paso Robles. According to Zepponi & Company, the region is highly-positioned to leverage premiumization trends in today's landscape because:
- Growth is occurring at price points above $15/bottle
- Increasing prestige and recognition for world-class vineyards and luxury-priced wines
- Focus on Cabernet Sauvignon and red blends
- Adequate grape supply at reasonable prices
- Independent brands gaining scale and broad distribution
According to Matt Franklin and Jenny Heiznen, strategic players are taking note and have acquired, will acquire, or are building their own Paso-centric brands (standalone and line extensions). Over the past two years, major Central Coast transactions are shifting the landscape of what comes next. Most recently:
- Jada & Ruboli Family Wines
- Booker Vineyard & Constellation Brands
- Rabble & O'Neill Vintners & Distillers
- Niven Wine Estates & WX Brands
- Bonny Doon Vineyard & War Room Ventures
Paso Robles Merger & Acquisition History & Background
Founded in 1981 with a focus on Bordeaux-style blends, Justin pioneered luxury-priced Paso Robles wine with Isosceles—the first nationally recognized luxury-priced wine from Paso Robles. Isosceles was leveraged to grow the entry level Paso Robles Cabernet Sauvignon brand at $20+ price point.
The business was acquired by The Wonderful Company in 2010. Today Daou has also emerged as a leader in Paso Robles at the $20+ price points. Founded in 2007, their success only continues to expand. Finally, the highly-celebrated Booker brand built a scalable portfolio to attract a top strategic buyer.
Seeking insider insights and strategic advice specific to Central Coast M&As?
Connect with California’s leading Vineyard Real Estate Broker, Jenny Heizen. Equipped with decades of wine industry experience, she’s the proven partner you rely on to navigate the complexities of California’s wine industry. With 6,500 acres of vineyard property sold in 2020 and 2021, she deeply understands the nuance of Paso Robles wine country and what’s to come for the broader industry at-large.
Contact Jenny Heinzen Real Estate today:
(805) 260-0581 | [email protected]
Note: Key data sourced by Jenny Henizen collaborator, Zepponi & Company.
