Jackson Confirms WII Article: Winemaking To Cease At Arrowood Winery

UPDATE, JULY 12 — Jackson Family Enterprises spokesperson Caroline Shaw did finally return someone’s phone call to confirm the article we wrote on Saturday.

According to WineBusiness.Com, Shaw told WineBusiness.Com, “We continue to right-size the company.”

Wine Industry Insight feels it may suffer a collective myocardial infarction if Shaw ever returns one of our phone calle.

Our original article continues, below.

Jackson Family Enterprises (JFE) will shutter winemaking activities at Arrowood Winery in Sonoma Valley within the next six weeks according to high-level company sources familiar with the decision.

The final decision, made on Friday, comes less than three weeks after Richard Arrowood announced his departure from the eponymous winery.

JFE spokeswoman Caroline Shaw did not return Wine Industry Insight’s request on Friday for comment on the move.

Arrowood was out of town and unavailable for comment.

WINEMAKING SECONDARY TO BOTTOM LINE?

In a June 21 news release, Arrowood said, “The decision to leave Arrowood Vineyards & Winery is a philosophical choice. At Amapola Creek [Arrowood’s new winery] I can use the winemaking techniques I developed that contributed to the success of Arrowood, yet on a much smaller scale. I still strongly believe in quality without compromise and prefer to make just a few fine gems.”

“That was Richard’s very diplomatic  way of saying he was not going to stand for the degradation of his winemaking,” said a JFE source. “We in Santa Rosa had started to tell him how to make wine, all the way down to what oak he could use. He found that unacceptable. I don’t blame him, but wine here has become secondary to the bottom line.”

DECISION PART OF CONTINUING COST-CUTTING CONSOLIDATION

Executive sources said the decision has been in the works for a number of weeks and was part of an extended consolidation intended to help the company adapt to recessionary pressures on company profits.

“I would estimate that we’ve laid off more than 300 people in the past two years,” said one source,” and I see that trend continuing.”

MOVE MIRRORS MATANZAS CREEK SHIFT

The decision to shift Arrowood Winery’s winemaking to a centralized facility and keep open the tasting room as a public face for the brand reflects a similar move at Matanzas Creek in March of this year.

Jackson Family Enterprises bought Matanzas Creek from Bill and Sandra McIver in 2000.

ARROWOOD WINERY: 4 NEW OWNERS IN 10 YEARS

Founded in 1987 by Richard and Alis Arrowood, the winery was sold to Robert Mondavi in 2000. In 2005 , Mondavi — then owned by Constellation Brands — sold Arrowood to the soon-to-become-bankrupt Legacy Estates Group.

Jackson Family Enterprises purchased the winery out of the Legacy bankruptcy in 2006 .