Far Niente CEO sees wine glass three-quarters full

As 2023 came to a close, Steve Spadarotto, CEO of the Far Niente family of Napa Valley wine brands, looked back on the past year – as well as forward into 2024 – and saw a wine glass three-quarters full.            

For Far Niente, 2024 will be highlighted by the planned opening of a dedicated winery for the company’s Bella Union brand, which will give Far Niente three facilities along Napa Valley’s prime thoroughfare, Highway 29, that are open to the public.

Looking more broadly, Spadarotto envisions continued growth for his company and for the total luxury wine market, but also sees a future shadowed by minuses as well as pluses. “While depletions are relatively soft,” he says, “the 2021 Napa Valley vintage coming to market was stellar, and wine people know that.” Additionally, winery visitations remain strong, he says, although per-person purchases are slightly down. Finally, Spadarotto believes interest in fine wine among Millennials “is catching up.”

Restored in 1979 by the Nickel family, the century-old Far Niente winery has grown to include wines made under six Far Niente Wine Estate (FNWE) labels – Far Niente, Nickel & Nickel, Dolce, Post & Beam and Enroute in addition to Bella Union. The group was purchased in 2016 by GI Partners, which also owns the Duckhorn family of wines plus other real estate ventures. Spadarotto, who has prior experience with Jackson Family Wines, Francis Ford Coppola and Ste. Michelle Wine Estates, took over the role of CEO at FNWE in 2018.

In a recent interview, Spadarotto discussed several corporate and industry issues.

Bella Union. While the brand, which specializes in Cabernet Sauvignon, has been around for 12 years, Spadarotto says, “We wanted its own winery to be something visible so that customers would have a greater awareness of Bella Union. And we love the direct-to-consumer sales” opportunities the new facility will provide. Actually, the “new” winery is a $17 million rework of the neglected Provenance Vineyards winery in Rutherford last owned by Treasury Wine Estates. “We’re turning an eyesore into one of the most-beautiful wineries in the valley,” Spadarotto says. It is scheduled to open in June.

Price Adjustments. “Some of our competitors are doing price rollbacks,” Spadrotto says, “but we haven’t seen any market resistance [to current prices]. We’re a pure luxury play, and we still think there is a significant uptapped area of growth there. I can’t speak about the sub-$20 market, as our lowest price is around $40.”

The 2021 Vintage. As Spadarotto notes, the 2021 vintage of Cabernet Sauvignon and other Napa Valley red varietals and blends now coming to market was prefaced by great reviews. “Even in California, people do pay attention to vintages, and there are a lot of people who are collectors,” he says. “We received more plus-25 ratings than in any previous vintage.”

The Younger Market. “Millennials are starting to catch up,” he says, and behaving more like the Baby Boomers. “Consumer patterns are changing post-college, and they are starting to entertain, to have folks over to cook, eat and drink fine wine. They are following the same path my generation did,” Spadarotto continues. “They have intellectual curiosity, and we respect that curiosity.”

Vineyards, Not Brands. Although FNWE consists of six brands, Spadarotto emphasizes the company is not looking to buy other brands, but is always ready to consider purchasing Napa

Valley vineyards. “We now own 540 acres in Napa Valley,” he says, “and we would benefit by adding capacity, especially with Cabernet.” While they don’t sell any fruit from their vineyards, he says, they do buy grapes. “We would like to see it be about 50-50 between our own vineyards and buying fruit.”

Doubled Digits and Paso Robles? “I’m confident of the next three years, which is how we look at the future,” Spadarotto concludes. “I see double-digit growth for us.” Will any of that growth from vineyards outside the region? “We are looking at Paso Robles and Oregon,” he says, “But nothing to discuss beyond that.”