EUGENE — King Estate Winery, one of Oregon’s largest wine producers, just grew even larger by acquiring longtime vineyard partner Pfeiffer Winery and Vineyards, a 70-acre operation near Junction City.

The purchase reflects a broader trend; the past few years have been accompanied by an uptick in mergers and acquisitions in the Oregon wine industry.

King Estate, founded in 1991, has bought grapes from Pfeiffer Winery since 1992, said Ed King, CEO and co-founder of King Estate.

The transaction, finalized Nov. 10, allows Pfeiffer Winery co-owners Robin and his wife Danuta Pfeiffer, 83 and 73 respectively, to retire.

Robin Pfeiffer grew up on this land, which his family bought in 1947. For decades, the Pfeiffers raised sheep and chickens until one too many coyotes killed a lamb and Pfeiffer decided wine grapes might be more profitable. In 1983, he planted the first vines.

“Robin Pfeiffer has done a tremendous job at growing grapes and making a great vineyard,” said Ed King. “…I just think it’s OK to take your hat off now and then and say, ‘Hey, there goes one of the real ones.’”

Pfeiffer said he didn’t want to sell to an outside investor or absentee owner.

“We love the idea that we’re handing it off to a friend…,” Danuta started.

“…Who knows and understands us,” Robin finished her sentence.

The acquisition allows King Estate to expand and secure its grape supply.

“We have worked with fruit from Pfeiffer Vineyard for 30 years. If someone else acquired it, we might not get that fruit anymore,” said King.

Pfeiffer Vineyard grows two main varieties: pinot noir and pinot gris. The site will increase King Estate’s total vineyard holdings by 15%.

At 1,033 acres, King Estate is the largest biodynamic vineyard in North America, according to the Willamette Valley Wineries Association.

King Estate works with about 50 vineyards across Oregon and Washington.

The plan is for King Estate to produce two kinds of wines from the newly acquired site: single-vineyard wines under the King Estate label, listing “Pfeiffer Vineyard” as the grape source, and blends.

King and the Pfeiffers say they expect a smooth transition.

King Estate has not yet made decisions about employees or the wine club. The Pfeiffers still have inventory to sell, so they will keep their tasting room open for several months. They plan to continue living on the property.

King did not disclose plans for the Pfeiffers’ facilities, but the couple are hopeful the new owners will make good use of their Tuscan-style tasting room, grand fireplace pavilion and four-tiered water garden.

The acquisition represents a wider trend. Andy Steinman, Pacific Northwest partner in Global Wine Partners, a mergers and acquisitions firm focused on the U.S. wine industry, said the Oregon wine industry experienced “a lot of merger and acquisition activity” in 2021 and 2022.

Recent sales have included a mix of in-state, out-of-state and foreign buyers, said Steinman.

“Sellers are often driven by the desire to retire,” he said. “Sometimes, the driver is how challenging the industry is. Other times, a wine business owner gets an unexpected economically beneficial offer.”

Many factors also drive buyers.

“Buyers are seeking to build scale, add to an existing portfolio or enter a new market or category,” said Steinman. “Sometimes, buyers are new to the wine industry and are seeking to enter the business.”

Recent mergers and acquisitions in the Oregon wine industry include:

Oregon-to-Oregon

• Sokol Blosser Winery buying Kalita Vineyard

• Hampton Lumber buying The Carlton Winemakers Studio

• Cowhorn Winery & Vineyard buying Johan Vineyards

• Local investors buying Witness Tree Vineyard

Out-of-state buyers

• Bledsoe-McDaniels Winery in Washington buying Oregon’s Hope Well Vineyard

• Constellation Brands, a U.S. company with more than 100 brands in its portfolio, buying Lingua Franca Winery

European buyers

• Bollinger family, who own French company Champagne Bollinger, buying Ponzi Vineyards

• Burgundy’s Louis Jadot buying Koosah Farms

• Italy’s Santa Margherita buying ROCO Winery

Source: Andy Steinman, Pacific Northwest partner in Global Wine Partners