Kosta-Browne Winery gets new majority owner

Sebastopol-based Kosta Browne Winery announced Monday that it is trading one private equity group for another as its new majority owner.

J.W. Childs Associates of Boston bought a controlling stake in the winery from Healdsburg-based The Vincraft Group, which is owned by notable local vintners including Bill Price, Walt Klenz and Pete Scott. The sale price was not disclosed, but Vincraft bought its stake in 2009 at an estimated $40 million.

Under the new deal, original partners Dan Kosta, Michael Browne and Chris Costello will retain a 40 percent ownership stake and continue to lead the operations.

The winery has made a name for itself through offering high-end pinot noir sold on a direct-to-consumer model, accounting for about 90 percent of sales. The other 10 percent of its wine is sold in restaurants.

In recent years Kosta Browne has expanded by purchasing a 20-acre vineyard and moving its production facility into The Barlow complex in Sebastopol.

Browne said Vincraft partners wanted to cash out their stake, and that Childs was a natural partner. CEO John Childs worked with Browne on building a separate wine brand, Cirq, where Childs is majority owner.

Childs was interested in investing in Kosta Browne in 2009 but could not complete the deal, Browne said.

The winery is slated to continue to grow by relying on demand from its customer base. Its wine list has a targeted wait time about 2½ years for purchases. It produces about 20,000 cases annually, Browne said.

The winery also is actively looking to purchase or lease new vineyards, specifically in the Green Valley area of the Russian River Valley, he said.

You can reach Staff Writer Bill Swindell at 521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.

EDITOR’S NOTE: An earlier version of this story incorrectly described the relationship of the Cirq wine brand to Kosta Browne Winery. Cirq is a separate brand and not part of Kosta Browne.