Rara Avis Vineyards: Has this bird flown?

Author: Sergio Canavati, Ph.D.; Kimberley Benson, MBA; Shaun Richardson, MBA

Publication: Wine Business Case Research Journal

Publication Date: April 16, 2018

Abstract:
Preston “Press” McLean (name disguised at his request) was a successful serial entrepreneur who created an investor group in 2006 to take over a troubled premium winery in Sonoma County. The business model introduced by McLean focused on enhancing the consumers’ experience and outsourced activities that did not directly contribute to the consumers’ experience. McLean’s reforms included rebranding the winery as Morning Star and refurbishing the physical infrastructure and tasting room. At the start of 2012, Morning Star had become highly successful, received positive reviews from the press, expanded its customer base, and ultimately became a popular destination for wine tourists. In January 2012, McLean partnered with an old friend, Michael Foucault, with the intention of diversifying his portfolio as well as replicating the business model that had been successful at Morning Star. They planned to acquire 100 percent of Rara Avis Vineyards, a premium winery in California’s Central Coast. Making the offer that would please both the buyer and the seller proved to be quite a challenging endeavor as McLean and Foucault reviewed the potential risks and rewards of acquiring Rara Avis Vineyards.