After A Run Of Acquisitions, Foley Family Wines Is In “Premiumization Mode”

While some companies retrenched during the pandemic, Foley Family Wines adopted the opposite strategy. Led by billionaire Bill Foley, the company has consistently grown through acquisition, and the pandemic years were no exception.

“I’m known as a serial acquirer,” says Foley. The most recent acquisition tear started in June 2020, when Foley bought Ferrari-Carano in Sonoma County, adding major volume to his business in a portfolio of wines priced at $15 or higher a 750-ml. Six months later, the company acquired Kenwood, California-based Chateau St. Jean. Most recently, in July 2022, it acquired Silverado Vineyards, a leading producer of luxury wines from estate vineyards across four Napa Valley appellations.

Those three purchases brought Foley Family Wines’ volume up to nearly 1.9 million cases in 2022, according to Impact Databank estimates, bringing the company closer to Foley’s stated goal of reaching 2 million cases. More importantly, the acquisitions further cement Foley Family Wines in the super-premium and luxury wine space. “We’re in premiumization mode now, and have moved away from some of the less expensive wines we were formerly involved with,” Foley explains. “At this point, more than 90% of our wines sell for more than $15 a bottle. Some are sold for $300 a bottle or more.”

Ferrari-Carano now makes up more than a quarter of the company’s total volume, boasting gains of 8.3% last year to reach 464,000 9-liter cases. At No. 2, Chalk Hill advanced 31% to 183,000 cases. Six other leading Foley brands—Sebastiani, Banshee, Rickshaw, The Four Graces, Silverado, and Firestone—also posted double-digit gains in 2022.

Even in an uncertain economy, Foley Family Wines president Shawn Schiffer says the company’s positioning in the super-premium wine space is in line with what consumers want. “From a price point perspective, wines priced above $11, and even above $15 and higher, are still doing pretty well,” he says. “Our portfolio in the higher price points has kept us pretty insulated from some of the impacts of the economic downturn.”

Going forward, Schiffer says the company is always looking for acquisitions. “The economic situation is going to put pressure on some producers who may have been holding on or moderately stable with a decent economy,” he says. “Now into year three, between the pandemic and other geopolitical issues that have hurt the economy, maybe some of these folks will decide that 2023 is the right time to exit their business.” This would benefit Foley, the acquirer, providing more opportunities for expansion. Market Watch has the full story.

Tagged : Banshee, Chalk Hill, Ferrari-Carano, Firestone, Foley Family Wines, Four Graces, Rickshaw, Sebastiani, Silverado

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.