Johnson Brothers and The Duckhorn Portfolio Announce Enhanced Distribution Relationship

Johnson Brothers and The Duckhorn Portfolio announced today that they have entered into an expanded distribution agreement, effective August 1.

This is the second phase of a comprehensive strategic evaluation of The Duckhorn Portfolio’s wholesale distribution network across the United States, with the goal of driving the profitable growth of sales through a substantial increase in focus and investment in the wholesale channel. Johnson Brothers will begin distribution of The Duckhorn Portfolio’s wines in their new territory later this summer.

“With the recent closing of our Sonoma-Cutrer acquisition, The Duckhorn Portfolio has grown in both scale and scope, and we are now the largest supplier of $15+ wines in the off-premise channel in the United States,” said Deirdre Mahlan, President & Chief Executive Officer and Chairperson of the Company. “Acquiring Sonoma-Cutrer provided an excellent opportunity to evaluate and optimize our distributor network across the United States to strengthen our ability to drive consistent profitable growth and increase shareholder value.”

Recognized as a premier pure-play producer of luxury wine in the United States, The Duckhorn Portfolio includes eleven acclaimed winery brands: Duckhorn Vineyards, Decoy, Sonoma-Cutrer, Kosta Browne, Goldeneye, Paraduxx, Calera, Migration, Postmark, Canvasback, and Greenwing. While the Company has worked with Johnson Brothers in Iowa and West Virginia, the Company’s distributor agreements and new alignment will expand the scope of their relationship. When the transition of territories is complete, the distribution of some or all of the Company’s winery brands will be handled by Johnson Brothers in Hawaii, Iowa, and West Virginia.

“During the process of evaluating our route to market strategy in the US, it became abundantly clear that Johnson Brothers has a highly motivated team and a proven track record of executing our goals,” said Pete Przybylinski, Executive Vice President, Chief Sales Officer of the Company. “We are excited to forge an even stronger relationship between our companies that will provide greater focus on our acclaimed portfolio of wineries while helping us to continue to outpace the market. Equally important, we believe that our enhanced relationship with Johnson Brothers will expand our reach and benefit our retail and consumer customers in Hawaii, Iowa, and West Virginia.”