Napa Valley winery destroyed by wildfire is snapped up by new power player

Five years after being destroyed by wildfires, a historic Napa Valley winery has been sold to one of the region’s new players — an up-and-coming investment firm.

Last year, Third Leaf Partners purchased Cain Vineyards and Winery, the 46-year-old Spring Mountain winery that was destroyed by the Glass Fire in 2020.

Much of the vineyard, known for producing some of the region’s European-style blends, was destroyed, as well as the tasting room. The Medlock family, who previously owned it, had hoped to rebuild but struggled to get things running.

The San Francisco investment firm did not buy the entire property, but instead the stock and brand, suggesting there may be more.

“Napa is a great region for the wine industry, and I think there’s a lot of financial pressure in the valley. There’s a lot of stress, the banks are kind of backing down, and a lot of funding sources are drying up,” said Alex Pagon, the company’s managing partner. San Francisco Chronicle.

“This creates the opportunity for us to find great brands and wineries that may not have a strong future.”

Most of the vines were destroyed in the fire, but significant replanting has taken place over the past few years. By 2030 it will be fully restored, said Caen winemaker Chris Howell.

Howell, who has been with the winery for 35 years, said they have already replanted two-thirds of the vineyard that was destroyed by the fire.

The winemaker attributed the wine’s unique flavor to the fact that the vineyard is built on “thin, clay-rich soil founded on an ancient rocky foundation” and “the cool, moist side of the Mayacamas mountain line.” It is located at an elevation of 2,000 feet on a ridge bordering the Napa and Sonoma county line. The brand’s flagship wine is Cain Five.

The investment firm said it does not plan to make “any changes to the wine industry.”

“Chris has never wavered in the quality or style of the wines he makes, and this is clearly a niche.”

The 500-acre Cain property will go to another undisclosed buyer, Pagon said.

The company has slowly built its wine portfolio over the past few years by purchasing Winebid, an online auction site, in 2017, followed by the purchase of online wine store Last Bottle in 2021.

In 2024, the investment firm purchased Cornerstone Cellars and its most popular wine brand, Conn Creek, from St. Louis. Michelle Wine Estates.

Napa’s wine industry is struggling as one winemaker in the region after another has closed, with demand declining amid changes in wine-drinking habits between generations.

Master winemaker Gallo recently announced the closure of a large production facility and the elimination of nearly 100 jobs in the wine-growing region of Napa and Sonoma counties.

Foley Family Wines & Spirits has also closed its production facility at the historic Central Coast Chalon winery.

While the industry is struggling, there’s a “huge opportunity now in California, and certainly in Napa” for his company, Pagon said.

“A lot of major companies, if they cannot find a new backer, will face the difficult decision to close. Our goal is to keep as many of these companies operating as possible.”

The Post has reached out to the company for further comment.

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