First Acquisition in 106-Year History : Christian Brothers Buys Quail Ridge Premium Winery

Christian Brothers Winery said Wednesday that it has bought Quail Ridge, a 10-year-old Napa Valley premium winery that was a subsidiary of a firm publicly traded on the Vancouver Stock Exchange.

It is the first time in the 106-year history of Napa Valley-based Christian Brothers that it has bought another winery and it continues the firm’s strong move under President Richard Maher into the field of super-premium wines.

No purchase price was revealed, but industry sources said Christian Brothers, whose corporate name is Mont La Salle Vineyards, paid about $2 million for Quail Ridge.

Ron Batori, director of public relations for Christian Brothers, said no vineyard property was involved in the deal. He said Christian Brothers bought the assets, winery and brand name.

He said Quail Ridge will operate as a separate winery and former co-owners Leon Santoro and Elaine Wellsley will remain as wine makers. Don Chase, now vice president-finance for Christian Bros. Sales Co., will become general manager of Quail Ridge.

Quail Ridge has produced only Napa Valley Cabernet Sauvignon and Chardonnay. It made 20,000 cases last year. The winery will release a 1986 Merlot later this year.

“We wanted an established brand to compete in the super-premium wine category,” Batori said.

The winery was a subsidiary of Quail Ridge Napa Valley Inc., which went public in February, 1987. A spokesman for Lawson, Lundell, Lawson & McIntosh, the Vancouver law firm for Quail Ridge, said the all-cash deal involves no stock in the parent company.

The initial Quail Ridge stock offering raised just over $1.1 million, largely from Canadian investors, at about $1.10 a share. The 1988 high for the stock has been 60 cents a share. The most recent trade was at 12 cents.

The deal was announced a month after Christian Brothers hired Gerald Pasterick, former president of Guild Wineries in San Francisco, as executive vice president.

Industry sources say Pasterick was a major force in successful marketing efforts at Guild. He was credited with developing the 1.5-liter “milk carton” package that Guild used in a successful campaign a year ago.

“Pasterick was largely responsible for a number of successes at Guild over the last year, and he has the talent to grow a business like the Christian Brothers,” said Jean-Michelle Valette, a winery and vineyard specialist with Hambrecht & Quist in San Francisco.

Valette said the Quail Ridge acquisition marked the start of a strong new marketing effort for Christian Brothers in premium wines.

“The fit was very natural because it gives us financial stability,” Santoro said. “We did the deal very quickly because it was so natural. They are a very strong company financially, and we feel now that we can concentrate on making great wine.”