A fire nearly destroyed this famous Napa winery. Then a hedge fund took over
In the past five years, a devastating wildfire, multiple legal battles and a bankruptcy filing put the future of one of Napa Valley's most storied wineries in jeopardy.
But now, an ambitious, $100 million revitalization from Spring Mountain Vineyard's new owners — New York City hedge fund MGG Investment Group — could bring the sprawling, downtrodden estate back from near death.
'It's going to look like a national park by the time we're done,' said Paul Goldberg, the president of Bettinelli Vineyard Development & Management, which is leading Spring Mountain's vineyard redevelopment efforts.
It's best known as the scenic backdrop of the popular 1980s soap opera 'Falcon Crest,' but Spring Mountain Vineyard, located in Napa Valley's Western hillsides, is a shell of its former self. First responders managed to stop the 2020 Glass Fire a few feet from the winery and its caves, but most of the massive, 845-acre mountain estate was engulfed in flames: 19 structures, including La Perla, a historic, 1870s winery, were destroyed and over 100 acres of vines were severely damaged.
Today, the property is a work in progress, a patchwork of ruins and burned trees, fresh growth, stacks of ripped out vines, fallow land and newly planted vineyard blocks. From certain vantage points, one can see the remains of Spring Mountain's neighbor, Newton Vineyard, which burned down in the fire and announced its permanent closure in February.
For the past year, there's been a near-constant whir of chainsaws at Spring Mountain as a crew of 20 people works tirelessly to remove dead trees. A dozen construction vehicles, including a 250,000-pound bulldozer, are congregated in front of a towering landslide, one of several that need to be repaired before new vines can go in. Fresh piles of milled redwood, recycled from 200-year-old trees that burned, await construction permits from the county.
The most encouraging sign of renewal: The forested property is once again teeming with wildlife, and it's not just the 4,000 goats and sheep assisting with fire mitigation.
'Early in the morning, it feels like we're at a zoo,' Goldberg said.
A full vineyard replant totaling about 220 acres over three years is at the center of MGG's Spring Mountain revitalization, which also includes plans to build back some of the lost structures and renovate the winery, caves and hospitality spaces. Spring Mountain CEO Peter Ekman estimated that the total effort will cost roughly $100 million and finish in 2028.
It's an incredibly complex undertaking. The team started by 'Swiss cheesing' the property with excavators, which dug hundreds of pits to help them 'understand on a very granular level what was going on with the soil,' Goldberg said.
They'll plant over 150 individual vineyard blocks one by one, each with customized rootstocks, clones, vine trellising and row orientations. The goal isn't just to replant, but to 'modernize' it and 'future proof' it for climate change, said Spring Mountain viticulture consultant Garrett Buckland of Premiere Viticultural Services.
'It's really a unique opportunity to fix a lot of the things that weren't looked at as important from an environmental protection standpoint,' he continued. 'One hundred years ago, they didn't think about that.'
Spring Mountain is one of the most 'fascinating' and versatile sites in Napa Valley, according to Goldberg. There are dozens of soil types and microclimates, a result of its extreme elevation range from the bottom of the mountain in St. Helena to 1,700 feet. Winery estates of this scale are almost nonexistent, but Spring Mountain was originally four separate properties known as La Perla, Chateau Chevalier, Alba and Miravalle, which were all founded between 1872 and 1884.
The original owners of these estates were some of the first to cultivate grapevines in the rugged Spring Mountain District, a subregion of Napa Valley. La Perla was the site of the first Cabernet Sauvignon vines in the district, planted in the 1870s. Chateau Chevalier was first planted by Jacob Beringer, co-founder of the famed Beringer Vineyards, and is home to one of the earliest gravity-flow wineries in the region. The Chevalier winery and Miravalle's Victorian-style mansion — the main setting for Falcon Crest' — both survived the fire. (They're also both rumored to be haunted.)
The four estates weren't combined for over 100 years. In the 1970s, a developer named Mike Robins, who established Spring Mountain Vineyard as a winery at another property a few years earlier, purchased Miravalle and moved it there. Soon after, Spring Mountain's Chardonnay competed in the famed Judgment of Paris, but the winery did not rise to the same level of fame as other California participants like Stag's Leap Wine Cellars and Chateau Montelena. The wines ultimately took a backseat to the 'Falcon Crest' fervor; Robbins even produced wines from a separate 'Falcon Crest' label. In the early 1990s, he declared bankruptcy.
It was the winery's next owner, secretive Swiss billionaire Jacqui Safra — the chairman of Encyclopedia Britannica and a member of the powerful Safra family — who bought Spring Mountain Vineyard and its three neighboring parcels, finally uniting them as one. The property is roughly the size of New York's Central Park.
Under Safra's reign, Spring Mountain began to experience a bit of a revival. But after the fire caused more than $35 million in damage, according to court filings, the winery seemed to reach a standstill as Safra became embroiled in two legal battles. In 2022, he sued one of his insurance carriers for refusing to pay his $10 million wildfire claim; the insurer countersued, claiming it wasn't obligated to pay. Spring Mountain had also defaulted on a $185 million loan from MGG and sued the lender to stop it from taking control of the winery. A forbearance agreement dictated that if Safra didn't sell the winery and massive wine inventory, a nearly 80,000-case cellar dating back to 1979, he'd have to sign over the deed to MGG.
Safra filed for bankruptcy in the fall of 2022. MGG acquired the property for a $42 million credit bid through the 2023 bankruptcy auction. But given the outstanding debt of the loan was much more than that, MGG 'probably paid twice what it was worth,' Ekman said.
Spring Mountain is MGG's first winery acquisition, and it's one in a long list of classic Napa Valley wineries to lose independent ownership. In January, Italian firm Generali Investments announced it will acquire a majority stake in MGG for $320 million, pending regulatory approval. Ekman said he's 'planning on business as usual.'
Outside owners, like foreign corporations and investment groups, are controversial in Napa Valley, where the region's pool of family-owned wineries is rapidly shrinking. Many in the wine industry believe these acquisitions ultimately degrade wine quality and tarnish the legacy of historic estates. In some cases, as with Heitz and Stony Hill, wineries have undergone flashy, multi-million-dollar rebrands and renovations that include big price jumps and alienate longtime customers.
This month, the first of Spring Mountain's new vines were planted: 40 acres on the Miravalle Ranch and 12 acres at Chateau Chevalier. But after the 2024 vintage, which Ekman claimed is 'the best wine ever produced from this property,' is released, it'll be years before Spring Mountain will release new wines from its estate and reveal the true impact of the ownership change. (In the interim, the winery will purchase fruit.)
When those wines do launch, likely not before 2030, Ekman said, they will look and taste different. Elkman has hired Napa Valley's most sought-after wine consulting duo, Philippe Melka and Maayan Koschitzky, to work alongside the winery's longtime winemaker Barrett Anderson. The goal is to mostly maintain Spring Mountain's classic and minimal intervention winemaking style, but the wines, including Cabernet Sauvignon, Sauvignon Blanc and Chardonnay, will have the newly-launched labels, featuring the 'Falcon Crest' mansion's cupola, and be more expensive. Ekman said his goal is to produce a 100-point wine.
Spring Mountain's production will also be a small fraction of what it was before: 2,000 to 3,000 cases a year versus upwards of 10,000. In a historic turn of events, 90% of the fruit will be sold to other wineries.
'That's a big change,' Ekman said, adding that the decision could help boost the reputation of the Spring Mountain District, which he feels is underrated. 'These are some of the best grapes in Napa Valley.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Can Nike Stock Make a Comeback? Here's What to Expect from NKE's Q4 Earnings.
Nike (NKE) is set to report its fourth quarter fiscal 2025 earnings on Thursday, June 26, amid a period of transition and uncertainty. While the sportswear giant has undertaken a series of turnaround efforts to regain its footing, the results of those strategies are not expected to show meaningful traction just yet. In the meantime, the upcoming earnings release is expected to reflect the weight of ongoing challenges, including intense competition, a sluggish Chinese market, and increased markdown activity. Notably, Nike's performance has been sluggish over the past several quarters. Given its weak performance, Nike stock has underperformed the broader markets. Moreover, it is down about 20.5% year-to-date. Robotaxis, Powell and Other Key Things to Watch this Week The 7 Signs Your Stock Is A Buyout Target These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For many investors, Q4 results may be less about the actual numbers and more about what lies ahead. The market will closely watch management's outlook for the fiscal first quarter and how well Nike is positioned to navigate tariff pressures. With nearly all of its production outside the U.S., Nike remains vulnerable to international trade disruptions and tariff-related cost pressures. Overall, market sentiment around Nike stock remains cautious ahead of the Q4 report. This means that a weak Q4 print is already factored into Nike's stock price. However, management's positive commentary for fiscal 2026 and its efforts around mitigating tariff-related headwinds could lift the stock. From a financial perspective, Nike's Q4 will remain weak. The company is likely to report declining sales for its classic footwear lines. Furthermore, traffic across both its direct-to-consumer and wholesale channels is expected to remain soft, and the company may continue to report weakness in China, its key growth market outside the U.S. Nike's management has guided for revenues to decline in the mid-teens range year-over-year in Q4, citing headwinds such as unfavorable shipment timing in North America and adverse foreign exchange impacts. Its margins are likely to remain under stress. Gross margins are projected to fall by 400 to 500 basis points, driven by a mix of restructuring charges, discounts, inventory challenges, and a less favorable product and channel mix. While Nike has faced significant competitive and macro headwinds, it has shown a knack for beating expectations. Nike has outpaced analysts' earnings forecasts for four consecutive quarters, including a significant beat in its most recent report. However, the company's fourth-quarter earnings are expected to continue declining. Analysts predict earnings per share of just $0.11, reflecting a sharp drop from $1.01 in the same quarter a year ago, as markdowns and softer demand will likely take a toll. While Nike is facing short-term headwinds, it is taking steps to turn things around. The sportswear giant is focusing on innovation and performance, aiming to refresh its product lineup with a steady stream of new designs and materials, especially in the sports performance segment. Nike is increasing the share of new products in each seasonal drop while carefully managing the presence of its classic models. On the digital front, Nike is making significant changes. The company is integrating Nike Digital more deeply into its overall marketplace strategy. It's reducing promotional events and markdowns to protect brand value and shifting clearance inventory to Nike Factory Stores instead of selling it online at steep discounts. As a result, Nike expects digital traffic to dip sharply in fiscal 2026. However, over time, as new products are rolled out and brand marketing intensifies, organic digital traffic is expected to stabilize and rebound. Nike is also cleaning up the broader retail landscape. For its digital platform, the company is being selective in what it buys and promotes, supporting a full-price sales model. At Nike Factory Stores, deeper discounts will help move larger volumes of clearance inventory. For wholesale partners, Nike is reducing forward supply, supporting sales with fewer returns, and offering better discounts to help them clear older stock. All these efforts will lead to an acceleration in growth. While Nike is taking steps to regain momentum, its Q4 is expected to reflect ongoing struggles. However, with sentiment cautious and expectations low heading into the report, any positive signals from management regarding future strategy, stabilization in China, or improvements in direct-to-consumer trends could be rewarded by the market. Wall Street has a 'Moderate Buy' consensus rating on Nike stock. Moreover, the average price target of $73.24 reflects decent upside potential of about 22% from current levels. On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Forbes
5 hours ago
- Forbes
Save The Best For Last In Your Presentation Narrative
Businesswoman giving a presentation in front of a bored distracted colleagues, EPS 8 vector ... More illustration getty McKinsey is a prestigious management consulting companies with a well-deserved sterling reputation for helping corporations deal with complex business problems. They also offer their clients advice on presentations, which is where they fall short, particularly with their recommendations for the composition of slide titles. 'Most McKinsey slides follow this simple but effective format: Action title: The title is written as a sentence that tells the viewer the conclusion of the slide,' explains PlusAI, a U.S. company offering to 'Supercharge your slides.' And Slideworks, a Danish-U.S. presentation design company started and run by former employees of McKinsey and other management consulting companies, recommends that 'the title of a slide should always be an 'action title' that articulates the key takeaway or 'so-what' of the slide.' Inexperienced boxers, in an effort to create momentum and force, wind up or rear back before throwing a punch. This is known as 'telegraphing.' The phrase, meaning a premature revelation of intentions, has taken on wider application in other sports and even in other contexts such as business, politics, and even writing. In all cases, the impact of the revelation is diffused or lost—an unwise strategy. Instead, as in boxing, the best advice is to withhold rather than signal intentions. This advice is also a perfect metaphor for the title of a slide. If a company called Acme Widget were to show a bar or a pie chart of their competitive landscape with their figures being the greatest, an action title would be 'Acme Widget Leads the Market.' If instead, the title were to be 'Acme Widget Competitive Landscape' with all the same information, the presenter could discuss the landscape, comparing and contrasting all the players and their offerings, and then conclude, 'Acme Widget's superior solution makes it the market leader' either verbally or as an animated text box—at the bottom of the slide. Furthermore, if the presentation were to be given to a customer, using the identical chart, the presenter could go beyond the conclusion to add, 'That's why the Acme Widget is the perfect solution for you.' And if the presentation were to be given to an investor, still with the identical chart, the presenter could go on to add, 'Acme Widget's superior performance makes it an attractive investment opportunity.' There are four important benefits of the above approach: Benefit One Logic: 'Action titles' jump to a conclusion before presenting the evidence. Only when the evidence is presented has the presenter earned to right to make a conclusion. Efficiency: No need to reinvent the wheel. Slides can be repurposed and used for diverse audiences, delegating the message to the presenter's narrative. Benefit Three Customization: Every audience has its unique requirements and benefits. One size does not fit all. Tailor every presentation to every audience. Benefit Four Focus: The presenter—and not the slide—delivers the message and provides the value. It can be no other way. 'Action titles' are actually quite passive. They assume that the audience will read the message and get the point on their own. Instead, the presenter actively leads the audience to a conclusion. That's called persuasion. To conclude, we turn to another metaphor: comedians save the punch line until the end of the joke.
Yahoo
7 hours ago
- Yahoo
Kraft Heinz's Q1 Earnings Call: Our Top 5 Analyst Questions
Kraft Heinz's first quarter results for 2025 were shaped by ongoing volume declines and increased investment in its brands amid a shifting consumer landscape. Management pointed to decreased sales volumes and softer demand in key categories as primary headwinds, but also highlighted continued efforts to renovate products and increase marketing spend. CEO Carlos Abrams-Rivera noted that, while improvements in brand quality and product innovation are underway, they are not yet evident in the financial results. He emphasized, "our commitment to making the necessary investments to deliver quality and value offerings to our consumers is unwavering." Is now the time to buy KHC? Find out in our full research report (it's free). Revenue: $6 billion vs analyst estimates of $6.02 billion (6.4% year-on-year decline, in line) Adjusted EPS: $0.62 vs analyst estimates of $0.60 (3% beat) Adjusted EBITDA: $1.43 billion vs analyst estimates of $1.42 billion (23.8% margin, 0.8% beat) Management lowered its full-year Adjusted EPS guidance to $2.59 at the midpoint, a 3.5% decrease Operating Margin: 19.9%, in line with the same quarter last year Organic Revenue fell 4.7% year on year (-0.5% in the same quarter last year) Sales Volumes fell 5.6% year on year (-3.2% in the same quarter last year) Market Capitalization: $30.54 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Lazar (Barclays) asked if the larger guidance cut reflects a new approach to investment. CEO Carlos Abrams-Rivera said the company is "playing offense with discipline," expanding the brand growth system to 40% of the business. Yasmeen Wandi (Bank of America) questioned whether North America volumes need to turn positive to hit guidance. CEO Abrams-Rivera clarified that the outlook does not require positive volume in any quarter. Tom Palmer (Citi) inquired about the impact of tariffs and commodity inflation on cost of goods sold. CFO Andre Maciel explained that most cost increases are expected in the second half, with mitigation efforts underway. David Palmer (Evercore ISI) asked about promotional activity compared to peers. Abrams-Rivera responded that the company remains selective, investing in promotions only during key consumer periods instead of chasing short-term volume. Chris Carey (Wells Fargo) sought clarity on Q2 gross margin pressure and market share trends. Abrams-Rivera cited higher promotional activity, hedge losses, and commodity peaks as temporary headwinds, but pointed to progress in "accelerate" businesses like cream cheese and ready-to-eat meals. Looking ahead, the StockStory team will be monitoring (1) the effectiveness of Kraft Heinz's increased marketing and product renovation initiatives on consumer demand, (2) the company's ability to manage input cost inflation and the timing of tariff impacts, and (3) whether international and emerging market performance can offset ongoing softness in North America. Progress in executing the brand growth system and margin stabilization will also be key signposts. Kraft Heinz currently trades at $25.88, down from $28.79 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
