Mark Aselstine
 
October 28, 2011 | Mark Aselstine

Sbragia Sells a Stake

Given that we've previously featured a Sbragia Family Vineyards Zinfandel, I thought it was interesting when I saw that the winery had been sold....as it turns initial reports which said the winery was sold were incorrect, the winery simply sold a portion of its business to Bacchus Capital Management, a San Francisco based private equity firm.

I don't want to bore everyone here with too many details of the wine business, but doesn't this simply make a ton of sense on all levels?  The Sbragia Family gets rich (or at least gets to dramatically expand their winery which would have taken decades of profits) all while likely keeping control of the winery which bears their name.  Bacchus is able to buy a portion of an asset which is likely undervalued due to the downturn in the wider economy and the pressure that has put on wine prices.  To me, it seems like a win-win.

I will make a short note that in my opinion, Bacchus is doing an outstanding job at selecting wineries in which to invest.  They aren't targeting up and coming wineries, but instead those truly primed to become household names.  I think both Sbragia and Qupe fall into that category, especially because the quality of wines produced has never been at issue.

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