Last week, news broke that Los Angeles-based private equity firm Butterfly Equity acquired The Duckhorn Portfolio, a once publicly traded company, and is taking it private.
Admittedly, unlike wine, being on the public market makes a lot of sense for beer and spirits companies. Simply put, the margins are much larger, which comes with the potential for massive financial returns. However, in the wine world, pivoting to private ownership will allow Butterfly to make more strategic and — for lack of a better word — ruthless decisions concerning The Duckhorn Portfolio that the wine label otherwise wouldn’t be able to pull off. What the firm actually intends to do with the wine brand, though, is unknown for now.
On this episode of the “VinePair Podcast,” Adam, Joanna, and Zach break down the implications of The Duckhorn Portfolio purchase. Why has Wall Street been so cool towards wine-only companies of late, and is it something that’s inherent to the wine industry, or just a bad moment for these particular entities? Tune in for more.
Joanna is drinking: Isola Bella at Café Mars
Zach is drinking: Harvey Wallbanger
Adam is drinking: Envinate Misturado de Abeleda
