Exclusive: O’Neill Vintners Acquires Substance Wine Brand From Charles Smith
July 1, 2024It’s been barely a month since California’s O’Neill Vintners & Distillers acquired Sonoma luxury producer Ram’s Gate Winery, but the company is already back on the acquisition trail with a new deal to purchase the Washington-based Substance wine brand from Charles Smith. Financial terms weren’t disclosed. According to Impact Databank, Substance grew 7.5% to just under 200,000 cases in the U.S. last year, and O’Neill tells SND there’s plenty of room for further expansion.
The core Substance range houses Washington-appellated wines retailing from $14-$20, including Substance ‘Cs’ Cabernet Sauvignon, ‘Sb’ Sauvignon Blanc, ‘Pn’ Pinot Noir, ‘Ch’ Chardonnay, ‘Rb’ Red Blend, and the single-vineyard Substance Vineyard Collection. Among those single-vineyard offerings, the 2019 Northridge Vineyard Merlot and 2019 Stoneridge Vineyard Merlot, each retailing at $50, both recently received scores of 92 points from Wine Spectator.
“We see a strong upside growth opportunity for Substance Wines as we expand distribution,” says Blaire Fraser, vice president of marketing at O’Neill. “Substance sales currently break down to about 70% off-premise and 30% on-premise. We see room for expansion across all channels. The brand has a small existing DTC presence, and we also hope to expand this moving forward as we recruit new consumers into the brand.”
“With Substance, Charles Smith has tapped into the ethos of Washington winemaking and, in collaboration with winemaker Brennon Leighton, built critically acclaimed wines that deliver the essence of Washington’s terroir,” added CEO Jeff O’Neill in a statement. “We see tremendous opportunity to engage new consumers.”
Substance joins the 1.8-million-case portfolio of brands at O’Neill Vintners & Distillers, with the stable also including Line 39, Harken Chardonnay, Rabble Wines, Charles Woodson’s Intercept, FitVine Wine, Robert Hall Winery, Allegro Cellars, Ram’s Gate, BrandyLab, and Javelin Vodka.
In a statement, Charles Smith said, “O’Neill Vintners & Distillers will take this brand to the next level of sales and distribution. It is in great hands for continued success.—Daniel Marsteller
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