When a winery's ownership/winemaker changes

[tuxy85]

I recently visited one of my favourite wineries in the Granite Belt. Boireann.

Boireann is a boutique winery that has been owned by a self-taught winemaker and vigneron, Peter Stark for more than a decade. In my opinion he has made wine that is in a league with Australia's best, particularly when you consider value/price. I love his bordeaux blend "The Lurnea," but he also makes some great Italian style wines and the Mouvedre and Shiraz Viogner are delicious too. In short everything he made was great wine.

On my recent visit I discovered that the winery had been sold to a group of investors. Peter Stark was staying on for 12 months and was the winemaker for the 2017 vintage. After that, the new manager will take over. He seemed like a nice enough guy who will do well as a salesman .... the problem is that he is not a winemaker. I guess neither was Peter Stark when he started but I don't think that all self-taught winemakers and vingnerons can all be as good as him. The new vigneron/winemaker told me that he came from the mining industry and was trying to learn as much as possible from Peter Stark in the 12 months he had with him.

I question the business decision of the investors to hire someone with no wine industry experience as the winemaker and vigneron, especially when from what I gather, qualified wine makers are a dime and dozen. Surely they could have found an assistant winemaker from down south who wanted to run their own show! Anyway, enough ranting from me.

What are your thoughts on what ususally happens when a quality boutique winery is sold? Does the quality inevitably decline? What are the variables that come into play? How much does good vineyard management over the last 20 years impact on the quality now if the expertise is lacking?

My thoughts are that I should buy up as much of the 2016 and 2017 vintage as possible and move on Happy to hear otherwise.

[Polymer]

You don't know what will be the result..but given what you've said, I'd probably buy up back vintages if I were you.

It could be the wines stay the same or even get better..but if you really like this place as much as you've made it sound, there is very little downside to buying more of it..

[Ian S]

Arguments both ways. I suspect the right attitude goes a long way.

[Wizz]

When Boireann was advertised for sale, I ran some numbers on it to work out where the value might be.

It is a small operation with a mailing list of about 400, and I understand a good chunk of production goes to mailing list and cellar door sales. That might not be enough cashflow to pay a quality winemaker, and after all, the Granite Belt is not the selling point that the more traditional winemaking areas in the southern states would be. I've also visited CD and bought some of their wine, and taken a look at his equipment - it is very much micro scale. Seems like a lifestyle buy rather than investable to me.

However - the new owners may try to expand. The winemaking might get contracted out - there are a few very good makers up there now. Lots could change.

I agree things will change, but its hard to tell in which direction. Look at Yarra Yering - who would have thought it would go to another level once Dr Carrodus passed on - Sarah Crowe is knocking them out of the park.

[GraemeG]

Look at Yarra Yering - who would have thought it would go to another level once Dr Carrodus passed on - Sarah Crowe is knocking them out of the park.

I assumed this was a reference to the pricing!

The winemaker is crucial. Just look at Mountadam, Petaluma, Bannockburn, Virgin Hills, Mount Pleasant....
Be interesting to see what happens to Domaine A.
cheers,
Graeme

[phillisc]

Look at Yarra Yering - who would have thought it would go to another level once Dr Carrodus passed on - Sarah Crowe is knocking them out of the park.

I assumed this was a reference to the pricing!

The winemaker is crucial. Just look at Mountadam, Petaluma, Bannockburn, Virgin Hills, Mount Pleasant....
Be interesting to see what happens to Domaine A.
cheers,
Graeme

Graeme, not sure that I would put Petaluma in the same category as the others, especially Virgin Hills.
Andrew Hardy has been doing a pretty good job at Petaluma for some time now.

Bit of a theme with Con Michos the winemaker under Croser at Petaluma before assuming the reins at Mountadam. Not sure how much influence Croser had in the later years and equally the Wynns at Mountadam, but patriarch Shiraz nowhere near what it once was..
As for Virgin Hills, don't make me weep. I can still remember the pristine 1990 bottles that I drank some time ago now...absolutely sublime. The wine is virtually a dinosaur now...the Hope Estate brand does not even mention it, far more interested in promoting the next 80s nostalgia concert.
Cheers
Craig