Startup Paso Robles wine brand Chronic Cellars purchased
Novato-based Winery Exchange has purchased Chronic Cellars out of Paso Robles, a young winery known for its red-wine blends and counter-culture branding. Terms of the deal were not disclosed.
Chronic Cellars is best known for red blends such as its zinfandel-based Purple Paradise and its syrah-based Sofa King Bueno, Winery Exchange said in a March 27 announcement. “This edgy, up-and-coming brand has posted strong growth through its tasting room, wine club and wholesale channels, despite having limited distribution and availability to this point,” the Novato firm said.
The winery was founded by brothers Jake and Josh Beckett in 2008, after both worked for a decade at Peachy Canyon Winery. The Beckett family will remain active in the operation of Chronic Cellars, according to the announcement, with Josh staying on as winemaker and Jake continuing to lead marketing and brand development. Dawn Beckett will continue to manage the brand’s tasting room and wine club, the firm said.
“The partnership with Winery Exchange gives us the sales coverage and financial resources necessary to continue Chronic’s expansion, while maintaining the brand’s integrity and quality,” Jake Beckett said in a news release. “We are excited to watch our brand continue to grow.”
Winery Exchange’s portfolio includes organic, sulfite-free brands Our Daily Red and Orleans Hill. The firm also develops, markets and sells custom wine, beer and spirits brands for major retailers around the world.
Chronic Cellars has established a “cult-like” following, especially among millennial wine drinkers, the firm’s senior vice president of marketing, Oren Lewin, said in the statement. “Chronic fits with our strategy to build a portfolio of national brands that are truly differentiated and bring new consumers into the wine category.”
M&A firm Zepponi & Co. was financial advisor to Chronic Cellars and negotiated the sale to Winery Exchange.