Sebastiani Vineyards, Century old, Family-owned California winery Sold

Sebastiani's history begins in 1904, when Samuele Sebastiani bought vineyards in northern California after immigrating to the U.S. from Tuscany, in Italy. The sale includes the Sebastiani winery, a Sebastiani tasting room and event center in downtown Sonoma, Calif., and 100 acres of vineyards.

Foley Wine Group Snaps Up Sebastiani Vineyards

Forbes Magazine

From Associated Press

By Betsy Vereckey

December 23, 2009,

After more than a century in business, a family-owned California winery has sold itself to a southern California conglomerate as consolidation swirls in wine country.

Amid increasing competition and consolidation in the wine industry, Foley Wine Group has purchased Sebastiani Vineyards for an undisclosed sum, according to a statement released by Sebastiani. The sale includes the Sebastiani winery, a Sebastiani tasting room and event center in downtown Sonoma, Calif., and 100 acres of vineyards.

Sebastiani's history begins in 1904, when Samuele Sebastiani bought vineyards in northern California after immigrating to the U.S. from Tuscany, in Italy, in 1895. Shortly after Sebastiani died in 1944, his son August and his wife, Sylvia, purchased the winery. Their daughter, Mary Ann, joined the winery in 1980.

"They really have exemplified a sense of heritage and history," said Honore Comfort, executive director of Sonoma County Vintners, which represents wineries in the region. "They were always looking to innovate and grow but have kept the business within the family. The sale of the winery is a departure from that."

Comfort said it was probably difficult to operate on a large scale as an independent winery, as competition in the wine industry has increased.

"We know the family is making the best decisions, but we're all a little sad to see one of our hallmark family wineries move out of the hands of the family," Comfort said.

The industry has been ripe with consolidation, following Constellation Brands (nyse: STZ - news - people )' 2007 purchase of Beam Wine Estates, a wine company in Sonoma County. Constellation Brands, which is based in Fairport, N.Y., also snapped up the Robert Mondavi Winery in 2004 for about $1.35 billion.

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