Wine Country’s popular ‘gateway’ winery has sold
Ram’s Gate Winery, which opened in 2011, has sold to O’Neill Vintners & Distillers.
Sam Wolson/Special to the Chronicle
Sonoma’s Ram’s Gate Winery, which produces single-vineyard Chardonnay and Pinot Noir from top California sites, has sold to beverage conglomerate O’Neill Vintners & Distillers.
At first glance, O’Neill’s acquisition of the Sonoma winery is unexpected, since the company has historically focused on less expensive and trend-driven wines, like low-sugar brand FitVine and Intercept from former Oakland Raiders defensive back Charles Woodson. Ram’s Gate, on the other hand, sells several Chardonnays for over $70 a bottle. But O’Neill Vintners founder and CEO Jeff O’Neill has a special connection to the winery: He was one of the four founders.
“In 2006, a friend said, ‘Hey you know a lot about this wine business. What do you think about this site?’ It was such a unique opportunity to create world-class Pinot Noir and Chardonnay,” said O’Neill of the first time he visited the Carneros property. “That whole area was really coming of age at the time.” Nearly 20 years later, he’s bought out his other partners for an undisclosed purchase price to become Ram’s Gate’s lone owner.
Ramin Rahimian/Special to The Chronicle
Located 2 miles north of Sears Point, Ram’s Gate markets itself as “the gateway to Sonoma Wine Country.” It’s the first winery people drive past when they turn off Highway 37 and the rural landscape gives way to vines. This location has helped make the winery a bustling tourist destination, and Ram’s Gate was also one of the first wineries in the area to offer fancy food pairings. Today, visitors can book a luxury picnic, a caviar experience and a five-course pairing.
O’Neill said he originally took the lead on building the winery’s home, recruiting renowned Wine Country architect Howard Backen to design the striking, barn-like structure that opened in 2011. “I was there every day during building. I can tell you where every paver, every tile came from,” said O’Neill.
The 125-acre, organically farmed estate sits on a knoll that rises from the San Pablo Bay and provides visitors with rare waterfront views. The cooling influences from the bay and the nearby Petaluma Gap make this spot prime land for growing Pinot Noir and Chardonnay, though Ram’s Gate also sources fruit from some of the region’s best-known sites, like renowned grower Larry Hyde’s Hyde Vineyard and El Diablo Vineyard, planted by the late Ulises Valdez.
O’Neill, who stepped back from Ram’s Gate in recent years to focus on O’Neill Vintners, said he hadn’t planned on bringing the winery under the company’s umbrella. But “an opportunity presented itself for us to get in the Sonoma region,” he said, “and it was an opportunity for (the other founders) to take advantage of their investment.” He added that the winemaking team, led by winemaker Joe Nielsen, will remain in place, and didn’t note any major changes.
Ramin Rahimian/Special to The Chronicle
Ram’s Gate, which produces roughly 8,000 cases of wine annually, is the O’Neill portfolio’s first winery from Sonoma, and its price point goes well beyond the average of the company, which produces about 1.2 million cases of wine per year, according to Wine Business Monthly. The acquisition has inspired O’Neill to create a new luxury wine division, starting with Ram’s Gate and one other O’Neill winery: Rabble, the Generation Z-focused red wine brand known for its augmented reality labels.
“We keep talking about young people not coming into the industry and I think that’s not exactly correct,” said O’Neill. “They’re not coming in at the super low end. What used to be a $5 entry-level wine 25 years ago is $15-$20 today, and I believe a lot of these new consumers are going to be coming in at a much higher level.”
O’Neill isn’t the only wine company shifting its focus to the luxury tier. Constellation Brands, for example, has notably sold off many of its inexpensive labels to make room for higher-end ones, like Sea Smoke, the renowned Santa Barbara winery it purchased earlier this month. The new division means O’Neill could be Constellation’s latest competitor, as its founder admitted he’d like to buy other premium wineries soon.
“We’ll be on the lookout,” he said. “We’re intending to grow in the luxury space.”
Source: https://www.sfchronicle.com/food/wine/article/rams-gate-oneill-sold-19470061.php