Andrew Browne, the boyish, energetic 38-year-old founder and chief executive of Washington's fastest-growing wine company, Precept Brands, admits to being a little lucky. But it takes more than luck to grow a start-up wine company to the largest privately held wine company in Washington state in just five years.
Last year, Browne's Precept Brands had more than 30 brands and sold more than 600,000 cases.
"You have to put yourself in the position to get lucky," Browne said.
That's likely good advice to take from a guy who at 21 was scratching out a living hawking cell phones in Santa Monica, Calif.
His affable charm was earning him more money and opening more doors than the history degree he earned from the University of Washington.
Then one day, he sold a couple of phones to some men who worked for a California wine distributor.
"They came back the following day and offered me a job," said Browne, seated at a long, heavy slab wood table in a farmhouse at Precept's Canyon Ranch Vineyard - the company's first and only vineyard.
Precept bought a 500-acre Prosser, Wash., vineyard, previously called Snipes Canyon Ranch, in January from Keith Klingele, who is now the company's vineyard manager.
It's a project Browne, who leaves the winemaking and grape growing to his hand-selected team of professionals, is excited about.
The picturesque vineyard will allow Browne's winemakers to work directly with Klingele to grow the grapes specifically for each of Precept's labels - giving winemakers the ability to have more influence over the wine, from the vineyards all the way to the bottle.
After a handful of years doing sales and marketing for distributors and wineries in California, Browne and his wife were ready to head home. Browne grew up in Spokane, and he was ready to get back to the Northwest.
He got the opportunity to work for Columbia Winery, where he met Dan Baty, owner of Corus Estates & Vineyards, which owned Columbia Winery, Covey Run and Paul Thomas in Washington and Ste. Chapelle and Sawtooth in Idaho.
Baty saw enough potential in Browne to turn the Corus reins to Browne, who, at just 28 years old, became president of the company.
Then in 2001, Corus sold most of its wineries to Constellation Brands, the world's largest wine company, for $52 million, and Browne stayed with Constellation as vice president of Northwest sales and operations.
But working in a corporate setting was too confining for Browne, a passionate, creative businessman who is always looking for a new venture.
"Andrew wasn't happy, and it was kind of like his wings had been clipped," said Alex Ootkin Evans, Precept's vice president of marketing.
Evans worked with Browne at Columbia Winery and also made the transition to Constellation after the Corus sale, staying with the company even after Browne left in 2002.
"I'd learned a lot at Columbia," Browne said. "And I knew I wanted to build a new company that could be sustainable for the long term."
And he knew he wanted to do it with the trusted team he had built at Corus.
"There are five of us who work extremely well together," Browne said. "It's a good team, and there's a lot of mutual admiration."
Browne, with his mentor Baty as a partner, called the co-workers, who included Evans, to see if they were willing to help him build his new company: Precept Brands.
She was working in the marketing department at Constellation's California headquarters when she got the call from her former boss.
"He offered me less money and more work," Evans said.
But she also trusted Browne enough to know whatever he was going to do would be special and she would have plenty of creative freedom.
In 2003, Browne launched Precept. The company's business plan reached out to the everyday wine consumer, offering modestly priced, quality wines.
In the beginning were Avery Lane and Sockeye which offered a wide selection of wines; Pavin & Riley, a Merlot-only label; and Barrelstone, a Syrah-only brand. Out of the last 150 wineries to have been bonded in Washington, Precept was the first to focus completely on selling wines for $15 or less.
With just a handful of employees and by contracting to have wines made by others in the classic European négociant style, the company shipped nearly 70,000 cases of wine to 15 states in the first seven months and made the first of many winery acquisitions, purchasing Washington Hills in Sunnyside from Harry Alhadeff.
Browne repackaged Washington Hills, and the following year the company's business more than doubled. In four years, the Washington Hills brand has grown by nearly 500 percent, Evans said.
Browne will be the first to tell you he's not a wine expert. His talent lies in marketing, an essential key in creating a successful winery, especially in Washington, where the number of bonded wineries has topped 500.
First, you have to get the right wine in the right package, Browne said. Then, you have to get that wine into the consumers' hands - and hope it leaves a big enough impression to keep them coming back.
The hard part for small wineries is getting the wine to the consumer. And that's where Browne is finding his niche. He has built a portfolio of quality wines through partnerships and buyouts that appeal to a wide audience. The company's growing portfolio makes it much more attractive to distributors, which traditionally don't want to carry brands that sell only a few hundred cases of wine a year.
That gives Dave Minick, founder of Willow Crest Winery, and Harry Alhadeff, who started Washington Hills and Apex, a better chance at finding shelf space at supermarkets throughout the nation.
The two have entered into partnerships with Precept Brands, and their labels are among the Precept portfolio.
Minick produces more than 8,000 cases of Willow Crest a year, but getting it to consumers has always been the trickiest task, he said.
"I'm a one-man show," said Minick, who entered into a partnership with Precept in April. "I'm the vineyard manager and the winemaker."
And he has a tasting room in Prosser to run.
"If I tried to do the marketing, I'd run out of daylight hours," said Minick. "There are better uses of my time."
That's why the co-ownership with Browne works so well for him.
"Andrew is definitely a visionary, and he came up with a concept I felt strongly about," Minick said.
Precept isn't a partner in Minick's vineyards but owns half of Minick's Prosser winery and tasting room.
Minick said now Willow Crest will focus on estate-grown, predominantly white varietal wines, including Pinot Gris and Riesling. He'll also make small lots of Chenin Blanc, Syrah, Cabernet Franc, Port, rosé, Chardonnay, Merlot, Mourvedre and late-harvest wines as tasting room exclusives.
Browne struck a similar deal with Alhadeff, buying half of the Apex label, four years after buying Washington Hills.
"He's done an impressive job of growing that label, and he'll be able to take Apex to a new level," Alhadeff said.
Alhadeff started Washington Hills in 1988 with highly respected winemaker Brian Carter, and the brand grew into a favorite with Washington wine lovers.
"For Apex to grow, it would have required a lot of capital in infrastructure and distribution," Alhadeff said. "Small brands have an extremely difficult time getting any focus from distributors."
They have few choices, Alhadeff explained. Small winery owners can find a small distributor that handles a small portfolio of high-end wines sold in small amounts to wine retailers or restaurants. Or they can go with large distributors, which are dominated by the big players "who won't sell any of your product," Alhadeff said.
Minick and Alhadeff said their partnerships will allow them to grow their wineries while also growing Precept's portfolio - allowing them to sell more wine to a wider audience.
Most of the wines in Precept's portfolio are from Washington, but Browne hasn't overlooked customer demand for Australian and Spanish wines. They created a Spanish brand, El Paseo, and bought Shingleback, an Australian winery that offers Cabernet Sauvignon and Shiraz.
Browne also forged a partnership with Charles Smith, owner of
K Vintners in Walla Walla, to market the popular wines Smith created under the Magnificent Wine Co. label, which include House Wine, Red Table Wine, White Table Wine, Steak House and Fish House.
And Browne bought Waterbrook Winery, one of Walla Walla's oldest wineries. As part of the deal with Eric Rindal, he retained winemaker John Freeman, who has become the company's head winemaker.
Browne said the partnerships Precept has entered into are as much about the people involved as the product they make. And Precept's success is the result of the people working with him.
"Success is based on all the critical parts of the organization - everyone in the organization. We have good leaders, not just on the executive level, but on the ground as well," he said.
When he finds good people, he gives them the opportunity to succeed and get lucky - similar to the opportunities presented to him by Baty, he said.
Not everyone thrives in Precept's working environment, Browne admitted. Browne doesn't micro-manage people. He hands them the ball, heads them toward the goal, and then expects them to figure out how to get there.
Then, he'll throw another ball.
He's always looking for another opportunity or thinking about another idea and often his management team has to rein him in, he said.
"This is not a top-down organization," Browne said. "I like that they will tell me when I'm out of line or going too fast."
Right now, they might accuse him of moving fast.
While the company's new vineyards are being planted in Prosser, construction on a $10 million winery project has started. In April, the company broke ground on Walla Walla Wine Works, a new 53,000-square-foot winery and production facility being built on 70 acres near Walla Walla.
Waterbrook will be the flagship wine for Walla Walla Wine Works, but the tasting facility also will feature many of Precept's other Washington labels, including Pendulum, Shimmer Wines and The Magnificent Wine Co. wines, and likely other new ventures.
Freeman will manage the production facility, which will be large enough to store 8,000 barrels of wine, hold 55 tanks and have its own crush pad and bottling line. The winery is expected to be complete in time for harvest this fall. It will include a 5,000-square-foot tasting room and a visitors center focused on consumer education featuring information about the Walla Walla wine region and the state's wine industry and growing areas.
Miller said the visitors center will open in December and will have private meeting rooms and a large patio and feature catered receptions and a retail tasting room to showcase the premium wines produced at the facility.
The landscaped grounds will feature walking trails, fish ponds and sprawling patios with views of the Blue Mountains. The winery will incorporate ecologically friendly practices and low-energy use.
"Walla Walla has a huge national footprint in the wine industry, and it's important that we share its rich heritage with the public," Browne said.
Miller said the company will keep Waterbrook's downtown Walla Walla tasting room open.
Right now, the company has no vineyards in Walla Walla, but that's not out of the question, Browne said.
"Making wine is about the vineyards and the land, about blending and crafting. It's about the winemakers and the growers," Browne said. "That's why we have great plans to continue to develop more world-class vineyards in Washington state in the years to come."
Precept's metoric rise
2002: Andrew Browne and his business partner combine their collective 50 years of Washington winemaking and branding experience and start Precept Wine Brands.
June 2003: First case of wine ships; Precept sells in 15 states; total number of employees: 5. First wine company out of the last 150 bonded in Washington to focus completely in the Under $15 category with the launch of Pavin & Riley, Avery Lane, Barrelstone & Sockeye.
Oct. 2003: Acquires Washington Hills.
Dec. 2003: Ships 70,000 cases in 2003 (June – Dec.).
Sept. 2004: Avery Lane featured on cover of Wine Press Northwest with article on "Great Northwest Value Wines."
Dec. 2004: Washington Hills cask wines launched.
June '03-Dec. 04: 47 "Best Buy" ratings for wines under $15.
Dec. 2004: Ships 200,000 cases in 2004.
March 2005: Pendulum, a delicately balanced red blend and a joint venture with Allen Shoup, is announced (owned 100% by Precept in 2008).
April 2005: Joint venture partnership between Precept and the Monson family of Goose Ridge in Richland, Wash., debut the 2002 vintage of Sol Duc, a $50 ultra-premium Columbia Valley blended red wine. Charlie Hoppes is the winemaker.
Spring 2005: "Precept Prestige Portfolio" launchs, a new channel management division representing Precept's ultra-premium wines to the broad market; designed to further Precept's expansion by focusing on the high-end wine segment.
June 2005: "Precept International Vineyards" launches with a focus on selling wine outside the U.S.
Fall 2005: Washington "lifestyle" wines introduced: Sweet Pea (apple wine) and Wrangler. Washington Hills cask wine recommended in Family Circle magazine to more than 4 million readers.
Dec. 2005: The Puget Sound Business Journal lists Andrew Browne as one of the Newsmakers of 2005 for being an innovator: "leaders notable for their creativity or striking advancements."
Jan. 2006: Pine & Post wines launchs.
Feb. 2006: Precept listed as No. 25 in Wine Business Monthly's list of Top 30 U.S. wine companies.
April 2006: Wine Enthusiast awards Pine & Post 2004 Merlot and 2004 Chardonnay 87 points and Best Buy ratings.
Sept. 2006: Precept partners with Charles Smith and The Magnificent Wine Co. to bring outstanding Washington wine into everyone's home with House Wine and Table Wine.
Dec. 2006: Wine Enthusiast names Pine & Post 2004 Chardonnay as one of the Top 100 Best Buy Wines of 2006.
Feb. 2007: Precept acquires Waterbrook, Walla Walla's fourth-oldest winery. Precept is listed as No. 22 in Wine Business Monthly's list of Top 30 U.S. companies.
July 2007: House Wine listed as the No.2 Hottest Small Wine Brand of 2006 according to Wine Business Monthly.
Dec. 2007: Real Simple Magazine recommends 2005 House Wine Red. Magnificentwine.com e-commerce web site is launched Pine & Post Chardonnay is recommended as No. 10 of Wine Enthusiast's Top 100 Best Buys of the Year for the second consecutive year. Waterbrook 2004 Merlot is the No.1 Value Merlot in the Seattle Times' Best Washington Wines of 2007. Real Simple Magazine recommends Watebrook 2005 Mélange as "What to Sip" for the holidays.
Jan. 2008: Precept purchases Canyon Ranch Vineyard (previously Snipes Canyon Ranch), a 500-acre property between Prosser and Benton City in the Yakima Valley. Plans are made to expand the vineyard from 150 acres to 400 acres. Precept Vineyard Estates will be the Precept division, managing all vineyard properties including Canyon Ranch Vineyard. Keith Klingele, former property owner, will continue to manage the site.
Feb. 2008: Precept forms a joint venture partnership with David Minick and Willow Crest Winery in Prosser, Wash. Precept forms a joint venture partnership with the McClaskey family and Red Door Cellars in Oregon. Precept is listed as No. 21 in Wine Business Monthly's list of Top 30 U.S. companies.
March 2008: Waterbrook Mélange is rated as one of the top 20 Washington Red Wines in Food & Wine Magazine Pine & Post Chardonnay is recommended as the No. 1 Value Wine in Food & Wine Magazine's Great American Wines Under $15 and is featured live on NBC's Today. Precept launches a $500,000 Northwest advertising campaign for Waterbrook Winery, including TV, radio, print and online ads. Additional campaigns are launched for Pine & Post (print & radio) and House Wine (billboards/wallscapes & print).
April 2008: Precept Wine Brands forms a joint venture partnership with Harry Alhadeff and Apex Cellars (including Apex, Apex II & Bridgman). Precept announces the groundbreaking of Walla Walla Wine Works; its new state-of-the art winery in Walla Walla, Wash. WWWW will produce 250,000 cases annually and is scheduled to open for harvest 2008. Waterbrook will be the winery's flagship brand and the site (on Highway 12 in Walla Walla) will include a visitors center and provide Washington wine education. 2006 House Wine White receives 89 points and a Best Value rating from Wine Spectator.
To date Precept Wine Brands has:
- More than 25 brands in its portfolio.
- 10 established partnerships.
- Sold 600,000 cases in 2007.
- Total number of employees in North America: 35.
Precept wines are sold throughout the United States and in Canada, Japan, Taiwan, Australia, New Zealand and the United Kingdom.
Precept Wine Brands is Washington's largest privately owned and its third-largest wine producer.
MARY HOPKIN covers the wine industry for the Tri-City Herald newspaper in Kennewick, Wash., and is a frequent contributor to Wine Press Northwest.
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