Exclusive Update: Constellation Acquires Sta. Rita Hills’ Sea Smoke in Major Pinot Noir Deal

The Santa Barbara County winery was a significant contributor to the area’s Pinot Noir and Chardonnay resurgence.

Constellation Brands, a beverage behemoth with a portfolio that includes Corona and Modelo beers, as well as wineries like Meiomi, Kim Crawford, and Robert Mondavi, has entered into an agreement to acquire Sea Smoke, a renowned Pinot Noir and Chardonnay estate vineyard in Santa Barbara County’s Sta. Rita Hills, from its founder, Bob Davids. The sale incorporates 1,100 acres of land with 256 acres planted with vines, a winery in Lompoc, and the inventory and brand. The purchase price has not been disclosed. [source1] [source2] [source3] [source4]

In spite of a slowing U.S. wine market, Constellation has maintained its pace of winery acquisitions as it transitions from value-priced to premium brands. The publicly traded company has recently acquired Schrader Cellars, Booker Vineyard, Lingua Franca, and Domaine Curry, and is presently investing in a significant renovation at Robert Mondavi Winery. [source5] [source6] [source7] [source8] [source9]

Sam Glaetzer, EVP and president of the Wine & Spirits division, stated in a press release, “We are excited to add Sea Smoke to our premium wine portfolio as we continue our growth strategy. Sea Smoke’s reputation for producing highly acclaimed estate vineyard wines aligns with our target consumer preferences for higher-end wines. Our team is eager to collaborate with the Sea Smoke team to enhance this outstanding winery while maintaining its tradition of quality and customer experience.”

Davids was new to the wine industry when he founded Sea Smoke in 1998, having made his fortune with a handheld video game company that produced titles such as Draw Poker and Bass Fishing. He planted his first vineyard in the Sta. Rita Hills on a south-facing slope that, depending on the time of day, enjoyed beautiful sunlight or Pacific winds and fog. Within a few vintages, his Pinot Noirs were earning top scores and spots in the Wine Spectator Top 100, part of a growing renaissance of Pinot Noir in Santa Barbara County.

Today, the large estate, which was expanded with the purchase of the neighboring Rita’s Crown Vineyard in 2016, is farmed biodynamically. Total annual production is 15,000 cases.

“We are extremely excited to collaborate with Constellation Brands as we begin writing a new chapter in the Sea Smoke story. They have the right team with the right resources and the expertise to help us grow and thrive in a highly competitive market,” said Victor Gallegos, vice president, general manager and director of winemaking at Sea Smoke, in a statement. “It was clear early on that both Constellation Brands and Sea Smoke share an unwavering commitment to excellence, sustainability and strategic growth.” Gallegos, longtime winemaker Don Schroeder and vineyard manager Julian Malone will remain with the company in their current roles.

Stay on top of important wine stories with Wine Spectator’s free Breaking News Alerts.

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!