Historic American Winery Vineyard Files for Bankruptcy, Putting 134 Years of Winemaking at Risk
In a significant blow to the American wine industry, one of the country’s oldest winemakers has filed for bankruptcy. Meier’s Winery, an iconic establishment that has been producing wines since 1890, filed for Chapter 11 bankruptcy on Wednesday, marking a precarious moment for Ohio’s oldest and largest winery.
Meier’s Winery, known for its diverse portfolio of over 30 different wines, sells bottles ranging from $8 to $15 through wine specialists and delivery services like Uber Eats. The winery’s use of Native American grape varieties is a testament to its rich heritage and dedication to traditional winemaking practices. However, this storied history now hangs in the balance as court filings reveal that the company owes up to $500 million.
Chapter 11 bankruptcy allows businesses to continue operations while reorganizing their debts and selling off assets. In Meier’s case, this means potentially parting with valuable assets, including farming equipment, wine stocks, and land. The winery is an affiliate of Vintage Wine Estates, which also filed for bankruptcy earlier this week. Although the two companies have operated separately since Vintage acquired Meier in 2022, they are now seeking to consolidate their bankruptcy cases.
The bankruptcy filing indicates that Meier’s owes money to over 200 businesses, a staggering figure that underscores the winery’s financial woes. The company informed the Bankruptcy Court in Delaware of its intent to sell all its assets, signaling a significant restructuring effort. Additionally, an unnamed creditor is planning to place a stalking horse bid on Meier’s, ensuring a minimum price for the company if no higher offers emerge.
Pat Roney, CEO of Vintage Wine Estates, praised Meier’s operation when the company was purchased in 2022. “Vintage Wine Estates has a longstanding relationship with Meier’s and has been a spirits client for many years. We know their operation to be among the most well-managed in the business,” Roney said. He expressed excitement about Meier’s expertise in ready-to-drink wine and beverage alcohol production, planning to expand production at their facility to include popular products like Ace Cider.
Vintage Wine Estates, the 15th largest wine producer in the United States, stated in its own bankruptcy filings that a decline in alcohol consumption post-COVID lockdowns was a key factor in its financial difficulties. The company boasts a portfolio of 30 wine and spirit brands, including notable names like B.R. Cohn, Clos Pegase, Firesteed, Kunde, and Layer Cake, with products ranging from $10 bottles to premium offerings over $140.
One of Vintage’s popular brands, Ace Cider, is sold widely at retailers like Target, priced around $14 for a six-pack. Vintage Wine Estates began in 2009 when former CEO Pat Roney expanded his holdings by adding two vineyards to the Napa Girard Winery he had owned for years. Today, the company encompasses a diverse range of wine and spirit brands.
The broader U.S. wine industry has been facing challenges, with more than 11,600 wineries selling 377 million cases in 2023, a decline from 445 million in 2021, according to BMO Financial Group estimates in May. This oversupply has led California grape growers to burn or remove thousands of acres of vineyards in an attempt to stabilize the market.
Vintage Wine Estates is not alone in its struggles. Many businesses, including retail chains and restaurants, have found it difficult to adapt to shifting consumer habits following the pandemic. The decline in alcohol consumption, coupled with economic uncertainties, has forced these businesses to rethink their strategies and, in some cases, seek bankruptcy protection.
For Meier’s Winery, the path forward remains uncertain. As the company navigates the bankruptcy process, the future of its 134-year legacy is at stake. The hope is that through reorganization and asset sales, Meier’s can emerge from this financial crisis and continue to produce the wines that have made it a cornerstone of the American wine industry for over a century. The outcome will be closely watched by industry experts, investors, and loyal customers alike, all hoping for a revival of this historic winery.
