The recent $285 million sale of Prisoner Wine Company from Huneeus Vintners to Constellation raised eyebrows this week. Not just because the brand was originally purchased by by Huneeus for $40 million when it was doing 85,000 cases…comparably stated as $470/current case sales at the time. Current volume is 175,000 cases which works out to $1,628 per current case. WOW!…just about a 4x increase in value.
The real news is that there was no land, vineyards or winery as part of the deal…it’s for the brand only.
What drove the increase in value? Two things…the right timing as the red blend category began to take off, and pricing the line at super premium MSRP’s, The Prisoner brand line retails for $35, another category that’s growing rapidly.