US: Northwest Vineyard Deals Reflect Rebound

(Wines&Vines) - The unprecedented wave of investment in Northwest vineyards and wineries in the past 18 months has been greeted by many as a vote of confidence in the region’s wine industry.

Washington state emerged as the leader in the latest round of transactions, with British Columbia’s Aquilini Investment Group adding 694 acres in the Horse Heaven Hills AVA to its holdings on the heels of 670 acres it acquired on Red Mountain from the Kennewick Irrigation District in November. Days later, Allan Bros. of Naches, Wash., paid an undisclosed sum to acquire Sagemoor Vineyards, which farms 883 acres of vineyards and 420 acres of tree fruits.

“I think if the industry had been doing poorly they probably wouldn’t have been looking at it,” said Kent Waliser, general manager of Sagemoor, noting that Allan Bros. did its due diligence regarding the vineyard’s contracts, customers and overall business model. “They liked how that looked, and they believe there’s a strong future in the wine industry.”

Allan Bros.’ desire to grow wine grapes mirrors diversification by other tree fruit growers including Zirkle Fruit Co. and Wyckoff Farms Inc. Its own acreage will give Sagemoor room to expand, while Sagemoor’s orchard acreage will also benefit Allan Bros. “They have a land base with some land that’s not planted to anything, and we’re going to start the process of strategically looking at where that land is and what it could grow best,” Waliser said.