Wine M&A Advisory Expands Its Reach to California Markets

A winery and vineyard merger and acquisition advisory firm has expanded from the Pacific Northwest into California to leverage the state’s robust wine market. Metis, based in Walla Walla, Washington, has appointed Lance Spears to lead its new California operations after successfully operating in Washington and Oregon for nine years.

Erik McLaughlin, the firm’s founder and CEO, noted the increasing interconnection among the wine industries of Oregon, Washington, and California, pointing out that several North Coast vintners already have interests in the Pacific Northwest. Given that California produces 81% of U.S. wine and ranks as the world’s fourth-largest wine producer, Metis is eager to tap into this significant market.

Despite current slowing in transactions in the wine sector, McLaughlin anticipates a rush of activity in the near future, as buyers are presently cautious but willing to pursue the right opportunities. He explained that this cautiousness stems from market pressures, strategic repositioning, and generational business transitions.

Potential acquirers are now focusing on businesses demonstrating solid growth and profitability. There is a demand for diversification across various areas, including varietals, price points, and sales channels. McLaughlin emphasized the need for precise matchmaking between buyers and sellers, contrasting it with the broader interest that characterized the market before the pandemic.

The bankruptcy of Vintage Wine Estates has significantly impacted the West Coast’s wine M&A landscape, pushing many sellers to adjust their pricing expectations. Spears noted that observing the challenges faced by many producers highlights the need for potential transactions.

Having started his career in wine in 2003, Spears has a wealth of experience, including serving as CFO of Seguin Moreau Cooperage in Napa. He has run a consultancy for vintners since 2009, providing CFO services across the West Coast. Although currently operating solo in California, he anticipates expanding the team as activity picks up.

Since its inception, Metis has completed around 50 transactions, primarily in the wine sector. Noteworthy recent transactions include the acquisition of The Radiant Sparkling Wine Company by Vinovate Custom Wine Services.

As Metis continues to focus on wine industry transactions — having recently spun off its hospitality practice into Birch Creek Advisors — the firm aims to solidify its presence in California for the anticipated increase in market activity. McLaughlin acknowledged the imperative of being poised to serve upcoming demands as transaction velocities increase.

For further details on the M&A landscape, visit Metis Advisors and the Bankruptcy of Vintage Wine Estates.

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