The Duckhorn Portfolio announced in a May 6th press release that it will end production of four of its brands: 'Canvasback', 'Migration', 'Paraduxx', and 'Postmark'. The company will now focus on its core wineries: 'Duckhorn Vineyards', 'Kosta Browne', 'Decoy', and 'Sonoma-Cutrer'. The 'Goldeneye', 'Calera', and 'Greenwing' brands will also be continued. As an additional measure, the tasting rooms for 'Canvasback' (Walla Walla, Washington), 'Migration' (Napa, California), and 'Sonoma-Cutrer' (Windsor, California) will be closed.
“We see tremendous potential for our core four wineries, along with Goldeneye, Calera and Greenwing, to contribute to the company's vision to be the leader in American luxury wine,” CEO Robert 1 Hanson stated in the press release. The press release also stated that these aforementioned brands account for 96% of the company's net sales and offer the greatest growth potential within the portfolio.
The Duckhorn Portfolio had been acquired only early last year for just under $2bn (approx. €1.8bn) by the Los Angeles-based private equity firm Butterfly. The magazine ‘Wine Spectator’, citing Impact Databank, puts the annual production at around 2.7m 9-liter cases, with revenue of $475m (approx. €424m) for 2024. Then, on February 1st, Robert Hanson, former head of Constellation Brands’ global wine and spirits portfolio, was appointed CEO of The Duckhorn Portfolio.
In a conversation with ‘Shanken News Daily’ (SND), Hanson made it clear that the changes reflected both the findings of the Butterfly team from the period when it got to know the company (in other words, the results of Butterfly's due diligence review of The Duckhorn Portfolio before the acquisition) and the current state of the wine industry. In the conversation, the CEO also specified that the company will sell through its existing inventories of 'Canvasback', 'Migration', 'Paraduxx', and 'Postmark' via its wholesale channels, but will cease direct-to-consumer sales and, for the time being, will not produce new vintages of these wines. SP
