Duckhorn Distills Focus: Streamlining Core Wines and Reducing Tasting Rooms and Brands

In a recent move reflecting the challenges facing the wine industry, Duckhorn Portfolio is pivoting its focus towards its most successful brands. Executives have announced a strategy to concentrate on seven top-selling brands, which means that four lesser-performing brands may soon vanish from the market. Additionally, the company plans to close several of its tasting rooms that have not been generating substantial traffic or profits.

On May 6, the news was released that Duckhorn would shift investments to prioritize its core four brands: Duckhorn Vineyards, Kosta Browne, Decoy, and Sonoma-Cutrer. The other brands included in the focus—Goldeneye, Calera, and Greenwing—collectively contribute to 96% of Duckhorn’s net sales. Consequently, Canvasback, Migration, Paraduxx, and Postmark will see a reduction in resources and marketing efforts.

Duckhorn’s CEO, Robert Hanson, mentioned that the company has been thriving in the $15 and above market segment. In the last two years, Duckhorn has claimed around 37% of the total growth in this price category. The strategy aims to leverage existing inventory of the brands being phased out while ceasing direct-to-consumer sales and future production of new vintages for Canvasback, Migration, Paraduxx, and Postmark. The plan is to treat these wines as predominantly wholesale offerings moving forward.

The decision to close tasting rooms was also difficult for the company. Tasting rooms associated with Migration and Canvasback in Walla Walla, Washington, as well as Sonoma-Cutrer’s location in Windsor, California, will close. However, Duckhorn remains optimistic about its tasting room at Duckhorn Vineyards and other locations, such as Goldeneye in Mendocino County and Calera on the Central Coast.

Duckhorn Portfolio underwent acquisition by a private equity firm, Butterfly, last year for nearly $2 billion, and has an annual production of around 2.7 million cases. With 2024 projected sales at $475 million, the recent changes aim to streamline operations and enhance profitability.

“These adjustments represent a strategic business decision, concentrating our resources where we see the greatest growth potential and profit,” said Hanson, affirming the rational basis behind their refocusing efforts.

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