Meiomi was conceptualised in 2006, its first bottling released in 2009, sold 60,000 cases in 2010, rocketed to over 600,000 cases in 2015, and in the same year sold to Constellation Brands for US$315 million, just the brand, no facilities or vineyards. A phenomenally meteoric rise, so why sell? That is why this was one of the biggest wine business stories in 2015. Here are the Cliff Notes.

Wagner Family of Wine

Since the 1940s the Wagner family has farmed the Caymus Vineyards in Napa and at that time they sold the grapes to other winemakers in the region. It was not until 1972 that they built the winery, then in 1975 released their own wine — the Caymus Special Selection, which became a major hit. Fast-forward to today, the Wagner Family of Wine consists of Caymus Vineyards (a Cabernet Sauvignon), Mer Soleil (Chardonnay), Conundrum (a mostly unknown blend), Belle Glos (Pinot Noir) and the new Emmolo (Sauvignon Blanc). The Wagner Family makes really great wines, which are all available in Jamaica. The Belle Glos Pinot Noir wines were my favourites, but due to the high government taxes on wines, I could not enjoy them as often as I would have liked. I was so happy when they released the Meiomi, which came in at a lower price and was a more ‘playful and approachable’ wine. So, when I heard that the Meiomi was only purchasing the brand, no winery or the vineyards, I had to learn more.

That “Sideways” effect

The American comedy-drama movie

Sideways was released in October 2004, nominated for five Academy Awards, winning one for best-adapted screenplay. The movie is about two men — one of them a wine aficionado, reaching middle age with not much to show but disappointment — who embarks on a week-long road trip through California’s wine country, just as one is about to tie the knot. Throughout the film, the wine aficionado speaks fondly of Pinot noir, while denigrating Merlot. Sales of Merlot dipped in the US after the movie, but Pinot Noir sales increased significantly, and the Wagner Family, who makes Meiomi, noticed this. “Nobody cared about Pinot Noir [beforeSideways],” said Meiomi Brand Owner Joe Wagner, in an interview withWine Spectator last year. “After its release, all bets were off, and you couldn’t make enough Pinot. [It] changed the dynamics of the industry for Pinot Noir.” Wagner added Chardonnay to the Meiomi brand, and sales were trending to over 700,000 cases last year.

Why?

The deal made sense for both the buyer and the seller. Meiomi is one of only three wine brands in the USA that sells over 500,000 cases per year in the US$20-US$40 category. Constellation is in the business of selling millions of cases of wine, and by acquiring this brand they will have a well-loved brand that they can add to their arsenal. Joe Wagner needed some cash — and US$315 Million is a lot of cash — to acquire land in California. Wagner will consult with Constellation for two years after the sale.

Will the wine continue to taste the same, or better? Only time will tell. It is still a crowd-pleaser that I buy by the case.

Christopher Reckord – Information Technology Entrepreneur & Wine Enthusiast. Send your questions and comments to creckord@gmail.com. Instagram: @chrisreckord Twitter: @Reckord