U.S. Vintner Acquires French Barrel Firm

A Napa Valley vintner involved in a 50-50 joint venture with a French firm to make wine barrels will take over the lion’s share of the operation following the death of the French company’s owner. And to ensure a steady supply of French oak staves and barrels, the vintner has arranged a stock swap with the French firm.

Bill Jaeger, co-owner of Rutherford Hill and Freemark Abbey wineries, was partner in the U.S. venture--known as Demptos Napa Cooperage--with Philippe Demptos, head of Tonnellerie Demptos, a well-known barrel-making firm based in Bordeaux. Demptos Napa Cooperage sold 9,000 barrels last year and had gross revenue of about $3.5 million.

But Demptos died of lung cancer on Feb. 24 at age 42. With neither his wife nor children able to run the business, the French firm went up for sale.

Jaeger dispatched his son Jeff, who had been national sales director for Rutherford Hill, to France to help run the company and assist the family in finding a buyer.

“Demptos was our sole source of supply for barrels and wood, so it’s clear that we had a great deal of interest in the health of that company, and we wanted the buyer to be the right party,” said Jaeger.

Last month, it was announced that Jean Francois of Francois Freres, a Burgundy barrel maker, had bought Demptos. Meanwhile, in a separate deal, Jaeger agreed to buy out all but 2% of the Demptos Napa operation from Demptos’ widow.

Following that deal, Jaeger said, he will exchange about 10% of his Napa barrel company for 10% of the stock in Tonnellerie Demptos in France.