A deal to sell Kenwood Vineyards to Banfi Vintners, first announced in March, has fallen through. F. Korbel & Bros., which has owned the Sonoma Valley winery since 1999, announced July 30 that it would be retaining ownership.
Korbel executives offered no details on why the parties walked away. “Due to confidentiality agreements, we cannot discuss anything about the terms of the sale or the termination of the sale,” said Margie Healy, Korbel’s vice president of communications. “All I can tell you is that F. Korbel and Bros. will continue to own and operate [Kenwood].”
Korbel president and owner Gary Heck and Banfi Vintners COO Marc Goodrich originally expected the deal to close last month. The deal would have included Kenwood’s winery, 22 acres of estate vineyards and all other assets. The expected purchase price was not disclosed.
It would have marked Banfi’s first foray into California, following its entry into the United States wine business in December 2010, when Banfi’s owners, the Mariani family, purchased Pacific Rim Winemakers, a Washington state Riesling brand. Banfi owns a successful import business in New York state but is best known for its Tuscan winery. Banfi executives did not respond to requests for comment.
Founded in 1970, Kenwood makes a range of wines priced from $9 to $70, with an annual production of about 500,000 cases. Among its best-known wines are its Artist Series Cabernet Sauvignon and its Sauvignon Blanc. In addition to Korbel and Kenwood, Heck’s winery portfolio includes Valley of the Moon, Lake Sonoma and other smaller labels.
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