Last week,
Constellation Brands spent a lot of money – $285 million a lot – to acquire The
Prisoner Wine Company. Most people probably aren't familiar with Constellation, but they are one of the world's largest wine producers. Constellation owns
Robert Mondavi Winery,
Clos du Bois,
Ravenswood,
Manischewitz,
Vendange and recently acquired (they spent $315 million for this brand)
Meiomi in addition to dozens of other wine brands. They also own the Corona, Pacifico and Modelo beer brands along with Svedka vodka. Chances are if you've bought a bottle of booze you've given Constellation some of your money.
There has been a lot written about this acquisition by the wine media. Most of the discussion revolves around the lack of vineyards or production facilities with the purchase. Just as with the Meiomi purchase, only the brand was acquired by Constellation. Some writers have been flabbergasted that so much money could be spent on a wine brand when the source of the grapes seems to be up in the air. Other companies, like
E & J Gallo Winery and
Jackson Family Wines have been buying vineyard land up and down the Pacific Coast. That certainly is a strong approach to building a wine empire, but I would argue that the Meiomi and Prisoner brands are stronger and more highly regarded than any owned by Gallo or JFW. In today's economy, brand is king. All of the most popular wines are built on brand and not on vineyard sources. From what vineyard does Two Buck Chuck or KJ's Vintner's Reserve come?? Prisoner is more about a certain style than it is about expressing a particular
terroir. That style of wine can be produced in much larger volume than a wine based on a defined place. To most American wine consumers, consistent style and availability is much more important than the expression of time and place. As much as this disturbs me personally, it is the way the wine industry has been trending for quite some time.
As aggressive as this approach seems to be, it is actually quite conservative. Providing the same style of wine year in and year out in as many markets as possible is a tried and true path to building a strong brand. Just look at how popular America's fast food chains have become. I can buy a Big Mac in Denver, Seattle and Miami and they all will taste the exact same. However, this doesn't mean all wine is going this way as my friend the
Wine Curmudgeon often rants about. The number of wine brands that are privately owned, small wineries is much larger than the number owned by "Big Wine" overlords – and actually continues to grow. Yes, volume-wise they are much smaller, but we obviously still have the progressive end of the wine where the expression of place and vintage characteristics is important. Instead of converging to the same common point, wine seems to be as rapidly diverging as American politics.
A few weeks ago – and prior to the acquisition announcement – I sat down with Prisoner's winemaker Jen Beloz to taste through the lineup. Jen started in 2011 after
Huneeus Vintners purchased Prisoner from
Orin Swift founder Dave Phinney for $40 million. While doubling production from ~85,000 cases to ~170,000 cases Huneeus made quite a profit on that ~6 year investment! And just think, The Prisoner originally started as a single 385 case label. Now, the portfolio of wines produced by PWC includes the namesake Prisoner blend, a newer white blend called Blindfold, the Thorn Merlot, a Zinfandel called Saldo, and a Cabernet Sauvignon known as Cuttings. The wines are perhaps known best for their clever, catchy, creative and most importantly memorable labels. The Prisoner label is an image Francisco de Goya's
The Little Prisoner etching. While the labels are cool and all that, I wanted to get to know what was inside the bottles.