Williams Selyem, king of Sonoma County pinot noir winemakers, sticks to its business roots
The worries among those operating a winery in 2019 are plentiful. The ongoing industry consolidation and possible recession are top concerns.
The management team at Williams Selyem in Healdsburg — the winery that put Sonoma County pinot noir on the map by winning the top prize for red wine at the 1987 California State Fair and decades later still is known for making some of the best pinot in the country — operates as an anomaly. Management’s chief task remains similar to the old adage of don’t try to fix something that’s not broken.
Owner John Dyson’s mantra in his 20-year ownership of Williams Selyem still stands: “I have never worked so hard to change nothing in my life.”
To be sure, there are challenges. Since the winery buys half of its grapes from contract growers, continuing to maintain sources for top-quality fruit is critical.
To spend a day at the Selyem winery on Westside Road is like visiting an earlier era before the 2004 movie “Sideways” launched pinot noir into what has become huge popularity in the U.S. marketplace. Its pinot mission is largely unchanged and the winery privately owned, while much bigger wineries and private-equity groups have acquired highly rated local pinot producers in their quest for growth.
For example, Jackson Family Wines of Santa Rosa bought Siduri Wines and Copain Wines. Kosta Browne Winery of Sebastopol is run by its second private- equity owner. Merry Edwards sold her Sebastopol winery this year to French Champagne maker Louis Roederer Champagne House, and then she retired.
They do things differently at Williams Selyem, enjoying tremendous success over 40 years. The winery founded by Burt Williams and Ed Selyem out of a Forestville garage maintains a waiting list of nine months to a year to sign up for its wine club. And the less than 10% of 25,000 cases of wine produced each year sold to restaurants and wholesalers never gets discounted — a mostly unheard of practice today in the wine sector.
Owners Dyson and his wife, Kathe, bought the winery in 1998 from the namesake founders for $9.5 million. They’ve adhered to the original business philosophy of making the best wine possible, not as much money as possible.
“The one thing that has been consistent the whole time is whatever it takes to make the best wine, we will spend the money,” said Eric Grams, the chief financial officer who has worked at the Selyem winery for 18 years. “The winemaker is ahead of the CFO in this business.”
A New York Ivy League educated private-equity investor who also owns wineries in Tuscany and New York, John Dyson’s career includes stints in local and state politics. He was a deputy mayor of New York in 1994-1996 as a Democrat under Republican Rudolph Giuliani. During the 1970s, the graduate of Cornell University and Princeton University was state commerce commissioner when the “I Love New York” tourism campaign was launched.
After the New York Dysons bought the Selyem winery in Sonoma County, there were fears that its proud pinot tradition was in danger. In fact, legendary New York Times reporter R.W. Apple Jr. sounded an alarm in a 1999 article when he wrote: “Can a minuscule winery, started by a couple of ornery, rough-hewn rural Californians, find continuing happiness as part of an international combine owned by a big-time venture capitalist from Wall Street?”