T
he US wine industry experienced a slight decline in sales last year, but premium wineries are bucking the trend. Meanwhile, the softening of the North Bay warehouse market has created an opportunity for Benicia-based Yandell Companies to expand its operations.

    Yandell is seeking 100,000 to 300,000 square feet of temperature-controlled warehouse space in southern Napa Valley. The company's CEO, Rick Moradian, notes that industry consolidation and shifting logistics demands have led to increased capacity needs among wine producers. As a result, rents are decreasing by 10-15% or more in some markets.

    Moradian sees this as an opportunity for Yandell to expand its footprint at a lower cost. The company has nearly 1 million square feet of warehouses, but is approaching capacity at its existing facilities in Solano and Sonoma counties. With the help of private equity investment from Fort Point Capital in 2023, Yandell acquired Redwood Wine Storage and Eagle Trucking, expanding its operations.

    Moradian attributes the industry's shift towards more stringent inventory management to economic pressures. "We're moving more towards a just-in-time model," he said. "Bottles are coming in, being inspected, and then two weeks later they're out the door to be filled and moved on."

    This evolution reflects broader market conditions, forcing wine producers to be more precise with forecasting, modeling, and execution. Yandell's integrated approach has positioned it well in this market, offering customers a one-stop-shop for logistics services.

    The company is now formulating a strategy to take advantage of the current market conditions. "We're looking at our leases, we're looking at opportunities out in the market, and we're formulating a strategy for near-term, short-term, or even mid-term," Moradian said.