Exclusive Story: Co-Founder James Hall Reacquires Patz & Hall Winery

Ste. Michelle Wine Estates is in the process of selling off the Sonoma Pinot Noir and Chardonnay producer as the company shifts its focus from California.

The wine industry is often buzzing with news of mergers and acquisitions, but the current happenings in California feel more like a return to roots. Patz & Hall‘s co-founder James Hall, along with a few investors, are repurchasing the winery, eight years after its sale to Ste. Michelle Wine Estates. This sale is part of Ste. Michelle’s strategy to part ways with its California wineries and concentrate on Washington brands. Post-acquisition, Hall will emerge as the primary shareholder. The company has not publicized the purchase price.

“For me, it’s like a dream turning into reality,” Hall confided to Wine Spectator. “I am passionate about winemaking and to have this opportunity to return is just irresistible. It went beyond being a decision, it’s an emotional need. It’s a way of life. It’s an obsession. And I have no plans to retire.”

Donald Patz and James Hall first crossed paths in the 1980s while they worked for Napa’s Flora Springs Winery. Joining forces with Anne Moses and Heather Patz, they launched Patz & Hall, with 1988 being their first vintage year. The company quickly gained recognition for its vineyard-designated and regional blends of Pinot Noir and Chardonnay, consistently scoring over 90 on the Wine Spectator‘s 100-point scale.

In 2016, the founders sold to Ste. Michelle, a major American wine company. Founder Patz moved on to start another wine business, while Hall stayed behind. At the peak, the Ste. Michelle portfolio featured Washington’s Chateau Ste. Michelle and Columbia Crest, Oregon’s Erath Winery, and Conn Creek and Villa Mt. Eden in California. They also collaborated with the Antinori family from Italy for Stag’s Leap Wine Cellars and Col Solare.

In 2020, Ste. Michelle was the eighth largest marketer of wine in the US. However, the pandemic hit them hard and their volume fell by over a million cases. In 2021, Ste. Michelle Wine Estates was bought by its parent company, Altria, by a New York private equity firm, Sycamore Partners, in a deal allegedly worth $1.2 billion. Since then, the company seems to refocus on its Pacific Northwest brands and reduce production. Ste. Michelle sold its stake in Stag’s Leap Wine Cellars in 2023 to Antinori, its partner.

Hall appreciates the time spent working with Ste. Michelle. He said their partnership was rewarding with few obstacles, and doubting the company would have survived the pandemic without their support. Hall states not much shifted in the winery between the 2016 acquisition and now. Their yearly production hovers around 40,000 cases. They offer about two dozen different Chardonnay and Pinot Noir wines in any given vintage, along with a set of three sparkling wines. Hall remains at the helm of winemaking, but he moved James McCeney up to senior winemaker last year, formerly from Lewis Cellars in Napa.

Due to Patz & Hall not owning any vineyards (Hall and his wife leased land in Green Valley to cultivate a 14-acre vineyard), the brand heavily counts on grapes purchased under long-term contracts Hall has with some of the state’s most esteemed vineyards, including Hyde, Dutton and Zio Tony.

When asked about the journey he has embarked on, Hall highlighted the humorous saying regarding the sheer joy a boat owner experiences on the day of the boat’s purchase as well as sale. “Last year, upon reaching the age of 65, it dawned on me that I didn’t have an overwhelming desire to engage in golf or sailing,” quipped Hall. He went on to mention having a daughter who is just 20 and hence the question of business inheritance is somewhat premature. “The wine maker that I have transform into today is a result of my tireless dedication over a span of forty years. At this moment, my focus continues to be on steering Patz & Hall smoothly and further enhancing our Chardonnay program,” he concluded.

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About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!