Wilsons Add to Winery Mini-Empire

By Paul Franson  2009-2-18 17:13:00

Acquisition of Jepson brings number of North Coast facilities to five

The Wilsons first started making wine in 1993, and completed Wilson Winery in Sonoma's Dry Creek appellation in 1998.
 
North Coast, Calif. -- Ken and Diane Wilson have acquired Jepson Winery near Hopland, a move that has left them with five boutique wineries in northern Sonoma and nearby Mendocino County: Wilson Winery and Mazzocco Winery in Dry Creek, Matrix Winery the nearby in Russian River Valley, de Lormier/Mosaic Vineyards in Alexander Valley, and Jepson in Mendocino.

Is this the beginning of a new Jackson-style empire? Not according to Ken Wilson. All the wineries make 5,000 cases per year or less, and he has no plans to ramp them up or combine production. "Each has its own identity, though my wife, winemaker Diane Wilson, is involved in their winemaking," he says.

Ken Wilson started buying land in western Dry Creek Valley in the early '80s, and he planted his first vines in 1988. He acquired and planted more in the '90s. Today he farms 220 acres of Dry Creek Valley hillside vineyards and owns about 400 acres of vineyards in Alexander Valley, where he bought land and planted grapes in 2000, then acquired more with winery purchases.

Wilson says that he was interested in making wine early on, but he didn't start until 1993, when he bought the historic Fredson Winery from retiring Chris Fredson. "It was an intriguing old bulk wine facility in what was really a barn," according to Wilson. "It was 100 years old, and still contained the original redwood vats and tanks."

He and Diane, who has a background in biochemistry, then began fulfilling their dream--making their own wine. The first was a 1994 Reserve Cabernet Sauvignon, though restoring the old barn and getting county permits took a few more years. By 1998, the complete winemaking operation was housed in what is now Wilson Winery. Slowly the operation grew to include additional varietals, and the annual production rose to about 3,000 cases.

Wilson bought nearby Mazzocco Winery in 2005. "Our contracts were being let go, and we had no place for our grapes," he says, so he bought Mazzocco to make wine there.

In 2007, the Wilsons bought the old Rabbit Ridge facility as a home for their Matrix wines, which had been made at Mazzocco.

They acquired the old de Lormier/Mosaic Winery last year to focus on Cabernet Sauvignon there. Wilson grows a lot of Cabernet, and buyers seem more interested in Cabernet from Alexander Valley than Dry Creek, which is best known for Zinfandel. "I wanted a showpiece for Cabernet and Chardonnay," he says. "I'm counting on it to be a little easier sell there than in Dry Creek."

Just down the road from the winery, a large Indian casino is being built, but Wilson doesn't expect that to have much impact on his sales. "People who go to casinos are different from Cabernet drinkers," he says.

The Wilsons' latest acquisition is Jepson Winery just north of Hopland. They bought it from investment group Dbon Mendocino LLC. The 1,250-acre property includes 121 acres of vineyards.

Dbon purchased Jepson with the backing of Fortress Investment Group in 2005, intending to renovate the winery and develop 1,000 acres of the wild hillsides behind it into high-end estates. They put Jepson on the market in 2008 because of the weak real estate market and expectations of trouble with Mendocino County's tough building restrictions.

Robert Jepson, a banker, founded the winery in 1985. The property includes a complete winery, custom-crush operation and a rare permit to distill brandy, as well as a classic pot still. The brandy is well regarded, like that of Germain-Robin, made in nearby Ukiah.

Wilson says he bought Jepson for the opportunities afforded by the vineyards, the facility and the brandy permit. "It's a beautiful facility, and the brandy is excellent. It stands up to the best Cognac in taste tests," he claims. Wilson also expects to make a little port-type wine, but he doubts that he'll continue the sparkling wine program.

The Wilsons are working with winemaker Alison Schneider on plans for renovation of the property and brand. The Jepson tasting room has been closed for two years, but it reopened Feb. 13.

As for all that land, Wilson doesn't intend to develop it. "We'll probably keep most of it wild to enjoy. Maybe people in our wine clubs will have some access to it," he says, adding, "When the climate for grapes improves, we may plant more vineyards." He says several hundred acres are suitable for grapegrowing.

All of the Wilsons' wineries depend primarily on direct sales, so Ken Wilson isn't looking to get additional clout with distributors from adding a new winery to his group. He also doesn't intend to merge production, but says there are some economies of scale in administration, finance and purchases.

The Wilsons also are restoring the old Soda Rock winery near Jimtown in Alexander Valley.


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