Guinness to Sell Concannon Vineyards to Its Wine Maker

British brewing giant Guinness PLC agreed Thursday to sell Concannon Vineyards, a Livermore Valley winery founded in 1883, to its wine maker, Sergio Traverso.

The sale price for the winery, which produces 65,000 cases a year, and the 220 acres of vineyards was not disclosed. But a wine industry analyst estimated that the deal was worth between $5 million and $8 million.

Guinness acquired Concannon in 1986 when it bought the winery’s parent company, Distillers Co., which also produces whiskeys. Last year Guinness announced it would sell its wineries and immediately began to look for buyers for its three California vineyards, Concannon, San Martin and Rodney Strong. Negotiations still are under way to sell San Martin and Rodney Strong.

Traverso, formerly wine maker with Sterling Vineyards in the Napa Valley, said he had been trying to buy the winery for more than two years.

Concannon was founded by James Concannon in 1883 ostensibly to make altar wines for the Catholic church. The then-family-owned winery prospered during Prohibition on its sacramental wine business and after Prohibition with a variety of blended wines.

Upgraded Wines

In the 1960s, Concannon became the first California winery to experiment with Rkatsiteli, the most widely planted grape of the Soviet Union. The winery became known for its Petite Sirah and Zinfandel Rose through the 1970s. The Concannon family sold the winery and vineyards in 1983 to Distillers.

Because of its long history in the wine business, Concannon often is found on restaurant wine lists.

Chilean-born and reared Traverso joined Concannon as its wine maker in 1982 and immediately began a program to upgrade its Chardonnay, Sauvignon Blanc and Cabernet Sauvignon wines.

Traverso said he plans no staff changes.