Chronic Cellars sold to Winery Exchange
Winery Exchange, a Novato-based company, announced Wednesday the acquisition of Chronic Cellars, a popular Paso Robles wine brand. Terms of the sale were not disclosed.
Founded by brothers Jake and Josh Beckett in 2008, Chronic Cellars is recognized as a counter-culture brand that produces exceptional wines, most notably red blends such as the Zinfandel based Purple Paradise and the Syrah based Sofa King Bueno, according to a press release from Winery Exchange. “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 statement said.
The Beckett family will continue to have active roles with Chronic Cellars. Josh will remain the winemaker; Jake will lead Chronic’s marketing and brand development; and Dawn will continue to manage the brand’s tasting room and wine club. “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,” said Jake Beckett. “We are excited to watch our brand continue to grow.”
Peter Byck, the president and CEO of Winery Exchange, believes that the brand is an excellent fit within the company’s portfolio of beverage alcohol products. “Chronic Cellars is a phenomenon in the market place – a combination of unbelievable wines and unique brand characteristics that resonate with millennial consumers,” stated Mr. Byck. “We are excited that Jake and Josh are staying engaged with the business, and look forward to working with them to grow Chronic and continue its involvement in the Paso Robles community.”
“Chronic Cellars has garnered a cult-like reputation among consumers seeking memorable and distinctively different wines and has established itself as a leader in the next generation of wines targeting millennial consumers,” expanded Oren Lewin, SVP of Marketing at Winery Exchange. “Chronic fits with our strategy to build a portfolio of national brands that are truly differentiated and bring new consumers into the wine category.”
Zepponi & Company served as the exclusive financial advisor to Chronic Cellars and negotiated the sale to Winery Exchange. “Our team is excited to watch where Winery Exchange takes Chronic Cellars. The momentum and success already created by Jake and Josh with this brand is sure to soar in the hands of Winery Exchange’s partnership with the Becketts,” said Joe Ciatti, a partner at Zepponi & Company. Zepponi & Company is a merger and acquisition advisory firm that serves the wine industry.
About Winery Exchange
Founded in 1999, Winery Exchange is a private brand beverage alcohol company. It supplies over 300 different products to retailers and consumers in 22 countries. The company’s portfolio of differentiated brands includes Our Daily Red and Orleans Hill, the leading USDA-certified organic and sulfite-free wines, which allow sulfite-sensitive consumers to enjoy great wine. Winery Exchange also develops, markets and sells exclusive, custom wine, beer and spirits brands for major retailers in the U.S. and abroad.