In the latest example of Okanagan winery consolidation, Anthony
von Mandl’s Iconic Wineries of British Columbia has acquired 12-year-old Liquidity
Wines Ltd. of Okanagan Falls.
No announcement is planned by Iconic Wineries; nor have
details been released about the transaction. Industry reports suggest Liquidity
sold for $12.5 million but this is unconfirmed.
This is von Mandl’s
first winery in the Okanagan Falls sub-appellation. His other Okanagan wineries
include Mission Hill Family Winery, Martin’s Lane Winery, CheckMate Wines,
CedarCreek Estate Winery (acquired in 2013) and Road 13 Vineyards (acquired in
2018).
Liquidity was established in 2008 when Ian MacDonald, a businessman
and art collector, teamed up with Calgary energy industry executives Jim
Davidson and Dale Shwed to buy an ailing Okanagan Falls vineyard left over from
a failed winery project. Liquidity subsequently added more Alberta-based
investors.
While making the initial vintages offsite, Liquidity’s
founders rejuvenated the vineyard, turned the house on the property into an elegant
tasting room and bistro, and built a separate winery.
After the bistro opened in 2013, Liquidity converted another
building on the property into a VIP tasting lounge. Art from Ian’s superb
personal collection is displayed here. The winery also hosts artists and their
work in the wine shop every year.
A spokesperson for Iconic Wineries says “it will be business
as usual, with the restaurant, the art and the winemaking.”
One reason for this transaction was perhaps telegraphed by a
comment made by Ian after the Supreme Court of Canada refused in 2018 to strike
down interprovincial barriers to selling wine direct to consumers in other
provinces.
“If you look 10 or 20 years down the road, it will not be very robust or
healthy,” Ian told one newspaper. “If there isn’t direct-to-consumer shipping I
feel like the industry will collapse over time. Small wineries in places like
California, Washington State and Oregon wouldn’t survive the same thing, I don’t
think the small winery would exist long-term without the opportunity. It will
be just a couple of large groups that control wineries and the products. Then
you will have controlled and monopolized pricing, restricted production and
lose access to small-batched quality wine.”
Von Mandl, however, has shown a unique ability to thrive in
the wine and beverage alcohol business. The Iconic Wineries group produces top
quality wines. For example, I have twice awarded 100 points to a Chardonnay
from CheckMate. The production facilities at Mission Hill produce thousands of
bottles of popularly-priced wine (both VQA and non-VQA).
As well, his other alcoholic beverage enterprises have been very
successful. In 2016, his Mark Anthony Group Inc. launched in the U.S. a vodka
soda called White Claw. It is projected to generate US$4 billion in revenues
next year. The product is just being introduced in Canada.
By most measures, Liquidity is a small boutique winery. The original
vineyard purchased in 2008 had 10 acres of mature vines, notably Pinot Noir;
another 10 on the prime south-facing slope was planted with Viognier,
Chardonnay, Pinot Gris, Merlot, Cabernet Franc and a little Cabernet Sauvignon.
In 2014 Liquidity added a contiguous vineyard by taking over the neighbouring
Lusitano Estate Winery, sold by the owners after just a year in business. These
three blocks of vineyard, now totalling 30 acres, mean that most of Liquidity’s
production, about 7,000 cases in 2018, is estate grown.
Liquidity’s early vintages were made first by consulting
winemakers and then by Matt Holmes, a young Australian. When he returned to his
homeland, Liquidity recruited Ontario-born Alison Moyes. Working as a sommelier
in Halifax fired her interest in winemaking. After training at Brock
University, she came to the Okanagan in 2008 to work at Osoyoos Larose Winery,
Stoneboat Vineyards and, since 2015, Liquidity. Under her hand, the Liquidity
portfolio has focussed on premium wines.
“Pinot Noir is where my
heart is,” Alison once told me. Her other wines have also impressed tasters.
Liquidity’s 2016 Chardonnay Reserve, as an example, won a gold medal at the
2018 Chardonnay du Monde competition.
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