{"id":204070,"date":"2021-03-17T03:55:00","date_gmt":"2021-03-17T00:55:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/"},"modified":"2021-03-17T03:55:00","modified_gmt":"2021-03-17T00:55:00","slug":"5-things-to-know-about-napa-valleys-duckhorn-wine-ipo","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/","title":{"rendered":"#\n  5 things to know about Napa Valley\u2019s Duckhorn wine IPO"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af9dad5c3cbc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af9dad5c3cbc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#Duckhorn_Portfolio_eyes_up_to_320_million_raise_in_stock-market_debut\" >Duckhorn Portfolio eyes up to $320 million raise in stock-market debut<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#1_Duckhorns_brands_are_a_luxury_product\" >1. Duckhorn\u2019s brands are a luxury product<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#2_The_IPO_route_wont_be_open_to_every_winery\" >2. The IPO route won\u2019t be open to every winery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#3_Wine_and_Wall_Street_dont_always_mix\" >3. Wine and Wall Street don\u2019t always mix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#4_%E2%80%98Blank_check_companies_are_circling\" >4. \u2018Blank check\u2019 companies are circling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#Era_of_SPACs\" >Era of SPACs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#5_World_War_II_as_a_drinking_reference\" >5. World War II as a drinking reference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/5-things-to-know-about-napa-valleys-duckhorn-wine-ipo\/#Joy_Wiltermuth\" >Joy Wiltermuth<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  5 things to know about Napa Valley\u2019s Duckhorn wine IPO<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Duckhorn_Portfolio_eyes_up_to_320_million_raise_in_stock-market_debut\"><\/span>\n  Duckhorn Portfolio eyes up to $320 million raise in stock-market debut<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000201302\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Wall Street is gearing up for a wine party.<\/p>\n<p> It\u2019s been decades since any of California\u2019s fabled wineries tried to go public. But that\u2019s about to change this week as Napa Valley\u2019s Duckhorn Portfolio looks to raise up to $320 million through an initial public offering of stock slated for Thursday.<\/p>\n<div class=\"paywall\">\n       The St. Helena, Calif. company started out 45 years ago making merlot wines in Napa Valley. It since has expanded to nearly a dozen luxury brands, including Duckhorn Vineyards, Decoy and Washington state\u2019s Greenwing, with bottles fetching prices from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1835256\/000119312521075461\/d90982ds1a.htm\" class=\"icon none\">$20 to $200<\/a>.<\/p>\n<p>Duckhorn plans to sell 20 million shares at a price range of $14 to $16 apiece to the public on Thursday, through its debut listing of shares on the New York Stock Exchange under the symbol<br \/>\n        NAPA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202699820\/delayed\" class=\"positive\">+0.94%<\/bg-quote><span>.<\/span>\n      <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Here are five things to know about the IPO:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"1_Duckhorns_brands_are_a_luxury_product\"><\/span>1. <strong>Duckhorn\u2019s brands are a luxury product<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>But many of its wines also can be found in grocery stores, especially in California, where about 24% of its wholesale net sales occurred in fiscal year 2020, according to its S-1 filing. <\/p>\n<p>\u201cFor a lot of wineries, 2020 was a very challenging year globally,\u201d said Stephen Rannekleiv, a Rabobank strategist and global sector head for beverages, adding that restaurant closures and limits on winery tasting rooms due to the health crisis often meant curtailed sales.<\/p>\n<p>However, Americans kept drinking wine throughout the crisis, giving an edge to larger-scale wineries with strong off-site sales, particularly those with familiar names customers recognized in stores.<\/p>\n<p>\u201cThey weren\u2019t going out to a restaurant and looking for niche wines,\u201d Rannekleiv said of wine drinkers last year. \u201cThey were doing their shopping in grocery stores and looking for tried and true brands.\u201d Sales by Duckhorn reached $271 million in the 2020 fiscal year ending July 31, up about 12% from a year prior.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"2_The_IPO_route_wont_be_open_to_every_winery\"><\/span>2. <strong>The IPO route won\u2019t be open to every winery<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Today\u2019s low rates have investors scrambling for riskier assets for yield \u2014 even if that means waiting longer to earn a return. But that doesn\u2019t mean investors should expect a bumper crop of new IPOs to flow from famed Napa Valley wineries, mainly because the bulk of the nation\u2019s estimated <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/winesvinesanalytics.com\/statistics\/winery\/\" class=\"icon none\">11,000 wineries<\/a>  are too small, producing fewer than 5,000 cases, according to Wines Vines Analytics.<\/p>\n<p>\u201cIt\u2019s probably been more than 20 years since we\u2019ve had a wine IPO,\u201d said Rob McMillan, executive vice president and founder of Silicon Valley Bank\u2019s wine division, adding that a couple of famous California IPOs in the 1990s struggled thereafter.<\/p>\n<p>The Robert Mondavi Corp. went public in 1993, but after its stock price tumbled it eventually was sold to beverage giant Constellation Brands<br \/>\n        STZ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207737284\/composite\" class=\"positive\">+0.33%<\/bg-quote><span>.<\/span><br \/>\n       Sonoma\u2019s Ravenswood Winery Inc. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/SB942106170571624377\" class=\"icon none\">made a rocky public debut in  1999<\/a>, and was sn<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed up this January by E. &amp; J. Gallo Winery along with 30 other brands, in one of the largest acquisitions in wine-industry history.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"3_Wine_and_Wall_Street_dont_always_mix\"><\/span>3. Wine and Wall Street don\u2019t always mix<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The agricultural nature of the wine business makes it tough for producers to provide quarterly guidance to investors.<\/p>\n<p>\u201cWineries involve a tremendous amount of assets that sit around for long parts of the year,\u201d McMillan said, pointing to the active growing and harvest seasons, but also the tendency for winery revenues to come in late in the year.<\/p>\n<p>If all your sales happen in the fourth quarter, but there are almost zero in the first quarter, McMillan said it can be difficult to operate as a public company. <\/p>\n<p>That\u2019s also why only about two dozen wine companies globally operate as public companies right now, he said, adding that means few sell-side analysts offering investors insights into the industry or stock values.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"4_%E2%80%98Blank_check_companies_are_circling\"><\/span>4. \u2018Blank check\u2019 companies are circling<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The boom in Special Purpose Acquisition Companies (SPACs), or \u201cblank-check\u201d companies, going public has led to speculation that everything from commercial real estate to wineries could be up for grabs.<\/p>\n<p>At least that\u2019s the strategy behind Santa Rosa, Calif.-based Vintage Wine Estates, which also plans to go public in May under the ticker VWE, reports Barron\u2019s. <\/p>\n<p>\u201cThere is so much cash in the market looking for good assets,\u201d said Rabobank\u2019s Rannekleiv, who published this chart on the tens of billions worth of SPAC funding announced since last year.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:75%;\" data-mobile-ratio=\"75%\" data-layout-ratio=\"75%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-312706?width=140&amp;size=1.3333333333333333 140w,\nhttps:\/\/images.mktw.net\/im-312706?width=540&amp;size=1.3333333333333333 540w,\nhttps:\/\/images.mktw.net\/im-312706?width=620&amp;size=1.3333333333333333 620w,\nhttps:\/\/images.mktw.net\/im-312706?width=700&amp;size=1.3333333333333333 700w,\nhttps:\/\/images.mktw.net\/im-312706?width=860&amp;size=1.3333333333333333 860w,\nhttps:\/\/images.mktw.net\/im-312706?width=1260&amp;size=1.3333333333333333 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-312706?width=620&amp;size=1.3333333333333333\" data-enlarge=\"https:\/\/images.mktw.net\/im-312706?width=1260&amp;size=1.3333333333333333\" alt=\"\" title=\"Era of SPACs\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Era_of_SPACs\"><\/span>Era of SPACs<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Rabobank Q1 wine report<\/p>\n<p><\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<h4><span class=\"ez-toc-section\" id=\"5_World_War_II_as_a_drinking_reference\"><\/span>5. World War II as a drinking reference<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p> Looking ahead, McMillan said he feels pretty optimistic about the wine industry, particularly after a brutal year due to COVID-19 and wildfires that burned parts of Napa Valley.<\/p>\n<p>\u201cMy own belief is that we are going to see a pretty good jump in sales volume over 2020 for the wine industry as we see reopenings,\u201d he told MarketWatch.<\/p>\n<p>\u201cPeople have been saying it will be like the Roaring \u201920s. I kind of like using the end of WWII as an example, because we have actual data around what happened with wine sales at that point,\u201d he said, adding that when service members returned from the war, wine consumption spiked.<\/p>\n<p>\u201cWe drank it all,\u201d he said of U.S. wine inventories, which can take years to replenish, unlike beer or spirits. \u201cPeople were looking to blow off a little steam.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Joy Wiltermuth\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Joy_Wiltermuth\"><\/span>Joy Wiltermuth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D31256A838C4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 5 things to know about Napa Valley\u2019s Duckhorn wine IPO &#8221; Duckhorn Portfolio eyes up to $320 million raise in stock-market debut Wall Street is gearing up for a wine party. It\u2019s been decades since any of California\u2019s fabled wineries tried to go public. But that\u2019s about to change this week as Napa Valley\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":204071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-204070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/204070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=204070"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/204070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/204071"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=204070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=204070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=204070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}