JACKSON FAMILY ESTATES: ADDING BRANDS FOR ADDED VALUE

When it comes to growing a wine business – or almost any business for that matter – there are two things you can do in terms of building brands. Increase brand production to drive sales or add new brands by taking over other wineries. Jackson Family Estates has chosen the latter during a profitable time when small wineries are looking to sell. While other large wine companies spend money on expansion projects, Jackson Family Estates seems to focus on taking new brands and developing them.

Jess Jackson and family have acquired six wineries in the past 12 months and plan to open two more soon. This month, Jess is set to complete his $97 million bankruptcy purchase of Freemark Abbey near St. Helena, Arrowood in Glen Ellen and Byron near Santa Maria, which collectively produce 76,000 cases annually. In June, he announced the Murphy Goode and the Robert Pecota Winery acquisitions, and reportedly plans to buy the La Jota winery. At this rate, the company will soon have a brand in every winery.

Wineries set to open this year are Pelton House in Sonoma County's Knights Valley and Kinton in Santa Barbara County.

Maintaining a diversified portfolio lends a more individualized image to brands, giving the illusion that a corporation is not involved – especially a 1,000-employee company. Of course, the company continues to grow and grow with every new acquisition, but it manages to shake things up and give a multiple brand offering. It also keeps customers’ interested at a time where the majority of growth is in high-end wine.