Duckhorn merges portfolio to close tasting room

Duckhorn Portfolio plans to focus its investment on the brewery’s clutch and close some of its tasting rooms to “profitable.”

The American Luxury Wine Group said it will prioritize its spending on the "four core wineries" - Duckhorn Vineyards, Kosta Browne, Guney and Sonoma-Cutrer, as well as Goldeneye Calera and Greenwing Brands.

Duckhorn CEO Robert Hanson said the move is part of the group's regular evaluation of its portfolio to ensure it has a good position to expand and profitably scale”.

The brewery accounts for 96% of California's company's net sales, representing the "largest growth opportunity" in its portfolio.

The company has chosen to prioritize seven wine brands operating in the premium and luxury wine segments of $15-50.

Over the past 24 months, Duckhorn said its portfolio accounts for 37% of the growth in the high and luxury price sectors and “continue to gain market share.”

Hansen added that the seven brands have “tremendous potential” to support Dukhorn’s ambition to become “the leader in American luxury wines.”

Therefore, Duckhorn will pull resources out of brands including Canvasback, Migration, Paraduxx and Postmark.

These tags have generated only 3.9% of Duckhorn's total gross profit over the past nine months, "declining in the 12 months behind."

They will continue to be available in wholesale markets over the next few years.

The California Group will also close tasting rooms that do not generate large amounts of revenue or contribute to profitability until June.

Close includes California's migration in Napa and Sonoma-Catler in Windsor, and Walla Walla's canvas back.

Duckhorn said that despite the closure of Sonoma-Cartler Tasting Room, its wholesale business, member club and winemaking businesses will remain “the main focus of this growth brand in the portfolio.”

The news comes after the latest management shift in the business. Hanson, a former Constellation brand executive, was appointed CEO in January, while Duckhorn last month appointed former WC brand executive Jeff NGO as the new chief growth officer.

"Duckhorn merges portfolio, Close Tasting Rooms" was originally created and published by GlobalData-owned brand Just Drinks.


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