“If one door closes, another door opens, I’m a big believer in that,” says former Lailey Vineyard partner and winemaker Derek Barnett, who, for the first time in 15 years, finds himself without a job.
Barnett elected not to sign on with the new owners of Lailey, John Chang and wife Allison Lu, who closed the deal for purchasing the iconic Niagara-on-the-Lake winery on Friday.
The Lailey family — which had listed the winery, property and vineyards for sale for years — finally found a buyer in Chang and Lu, who immigrated to Canada from Taiwan in 1995.
The couple already own Lulu Island Winery in B.C. with its icewine production accounting for almost 50 per cent of all of that province’s icewine, of which 80 percent is exported to China, Japan and Taiwan. That accounts for almost 20 per cent of all Canadian wine export to China, according to a story in a Richmond newspaper.
Another property, Grizzli Winery in the Okanagan Valley, is under construction with the grand opening scheduled for spring 2016. Another Niagara property acquisition is said to be in the works.
As for Barnett, there is some sadness at not being part of a project that he nurtured from the start 15 years ago when the Lailey family moved from grape growers to winemakers and signed up Barnett on as a partner in the new venture.
The wine portfolio at Lailey is coveted by wine collectors and is well placed on top restaurant wine lists throughout Ontario.
Some of the key pieces in the portfolio include the Chardonnays, Pinot Noirs and Gewurztraminers from the Old Vines planted at Lailey in 1978, the single-vineyard Brickyard Vineyard wines and the Canadian oak aged wines, which Barnett pioneered in Niagara.
“Sometimes I made too many wines,” Barnett said today in a phone interview. “But it brought people to our doors.”
Barnett is most proud of the fact that his wines “showed a sense of place — they were what they were. The wines are balanced, fruitful and, for the most part, age-worthy.”
Barnett has no idea what the next chapter has in store for him, but after “a little down time” he will chart the next course, which could possibly include a virtual winery under his own label.
As for Lailey under the new owners? A lot of rumours are floating around right now of old-vine vineyards being torn up, production turning entirely to icewine and the entire 2015 vintage being scrapped all together.
Ed Haddon, former marketing manager for Lailey and now manager of retail operations with the new owners, and the “last man standing” from the former staff, can’t comment on all the rumours swirling because he hasn’t heard them and has had no time to dig into social media sites.
But he says Lailey will be back open for business in a day or two while new computers are brought in and the switch is made from one owner to another.
He said the sale of Lailey went through in two stages; the first stage, which included the property and dwellings, closed July 1 and the second phase, the winery and business end, closed Friday.
He says some renovations will take place and some minor label changes will occur but nothing drastic that he’s aware of.
As for vineyards being ripped out to make way for more icewine grapes, he’s only aware of some Vidal coming out to be replaced by Riesling. The key vineyards, Brickyard and Old Vines, are still there.
Haddon does anticipate an increase in icewine production and an increase in export to Asian markets. As for the 2015 vintage, the vineyards were hit hard with winter damage and production will be well down.
As for who will make the wines in the future and finish the wines already started? Haddon has no idea. “We’re winemakerless right now,” he said.
Who is John Chang?
The Richmond Review newspaper published a story on July 15 after Chang was named one of the RBC Top 25 Canadian Immigrants in 2015 for being the biggest Canadian exporter of icewine to Asia.
Chang moved from Taiwan to Canada in 1995 with his wife Allison Lu and was an entrepreneur who started from scratch.
He is president and co-owner along with Lu of the Lulu Island Winery in B.C.
Chang left behind his PC board production company in Taiwan, looking for a new opportunity. Inspired by his father who was a farmer, he dedicated himself to producing wine.
In 2000, he founded Blossom Winery, which was renamed Lulu Island Winery in 2007.
Chang told the Richmond newspaper that there are three key guidelines to running a successful business: quality, customer service and innovation.
“We please the customers with top-notch services to make sure buyers are fully satisfied with the company’s products,” he said.
Chang strived to make his business unique. His first fruitful step was making blueberry wine, a unique item in the wine industry, in 2001. Next up in Chang’s exclusive productions is ice brandy.
In 2013, Lulu Island Winery’s icewine production was almost 50 per cent of B.C.’s icewine production, of which 80 percent is exported to China, Japan and Taiwan. That accounts for almost 20 per cent of all Canadian wine export to China.
Chang’s vision is to own four wineries in Canada — two in the west and two in the east. Chang opened Lulu Island Winery in 2009 and bought Lailey Winery in Niagara-on-the-Lake on Friday. His third, Grizzli Winery in the Okanagan Valley, is under construction with the grand opening scheduled for spring 2016. Chang is looking to open another winery within the Niagara region in 2017 to complete his vision and winery empire.
Winery for sale
This is the blurb that ran on a real estate site when Lailey was listed for sale at $6 million:
“Do you dream of quitting the cubicle, retiring to the countryside, perhaps buying a farm or even a vineyard? If so, this property is for you! The picturesque 23-acre Lailey Estate Winery is set in a perfect location on the Niagara River Parkway a main tourist route through the heart of Niagara wine country between Niagara Falls and the old town of Niagara on the Lake once voted the prettiest town in Canada.
See here for gallery.
Derek Lailey?
Fixed. Not the first time I’ve attached the Lailey name to Derek.
Sad! I wish owners wouldn’t sell to just anyone that comes by with $$$!
Thanks for this article. It clears up a lot of “rumours” running around Niagara. I received this response from the new owners this morning:
“Mr Barnett will be missed as a fine wine maker. He made the choice to depart Lailey we will all miss him!”
Thanks, Fred.
Derek is a huge loss!
Noooo!!! Derek was the heart-and-soul winemaker at Lailey — Derek *was* Lailey; so much so that this article misnames him, lol!
Bumping into Derek over the years was always a pleasure – each time he had something up his sleeve to tell us about (or have me taste). Bill and I wish him well. We’re sure that we’ll be tasting his excellent wines again in a few years. In the meantime… too bad that I hadn’t stocked up a bit more on his wines! :-(
Derek Barnett : watch out for his name associated with yet another set of fantastic wines sure to come!
Diane, yes, sorry, I did misspell Derek’s name incorrectly in earlier versions. My apologies!
It is with great sadness that I got the news. I have been selling Derek’s wines for the last 9 years on the Quebec market. We were so proud of representing the fine wines made by this most passionnate man. It is very sad to see this Ontarian Jewel of an estate fall into what might be a savage dismantling of one of the most Iconic winery in Canada. The news brought a tear to my eyes, i believed in the Lailey’s wines not because of the Lailey name But because of one man, Derek Barnett. Lailey new owner has no clue the damage that he just made. Coming in a well established vineyard nurtured and pampered by one of the most respected winemaker in the business and “loosing” him is a very wrong move.
I was not there, but I doubt that this man who “Is” the Lailey Frontman since day one left the winery on is own will. But this is my personnal Opinion! Would you listen to U2 without Bono? Probably not. This is the same effect, Money can buy everything, but will not buy the love and the devotion of that unique individual that was the respected WINEMAKER that is Derek Bernett.
Derek stepping down? I really doubt that.
A hot air baloon head dismissing the heart and soul of that top canadian is more likely to my own opinion.
Derek my friend, follow your heart, you are the best, always been, I will miss all the visits, the fun and the amazing wines. I am sure that there must be not one but hundreds of doors that are already open for you. Our clients and followers of the wines of Derek will miss you, but for a very short moment I hope.
With great love and admiration I wish you the best of Luck!
Martin Charlebois
Sommelier
Martin, Thanks for your thoughts on this very passionate topic. I agree that Lailey will never likely be the same without Derek as the winemaker but as for whether he left on his own accord or not, I think that is best left with what Derek himself says. He told me he did not sign a contract offer with the new owner and that was that. Was it because he didn’t like the offer? Didn’t like where Lailey was headed? Took the opportunity to explore other options? I don’t know, but he left on his terms and that’s the way he wants it portrayed. One thing lost in all the outrage on social media over the sale of Lailey is the fact that Lailey has, in fact, been for sale for quite a while now. Generally what happens when you sell a big business like this is you accept the highest offer that comes your way for the benefit of the partners involved. You don’t get to call the shots on what the new owners will or will not do once it’s theirs. We have seen complete failures (look at Alvento, all but gone now) and successes (Marynissen seems to be doing all the rights things since changing owners). The thing is, the new Lailey owners have a business plan for the property and winery that makes sense, business sense, for them. And they paid a lot of money to find out if they can succeed. I’m told they are not ripping out the Old Vines or Brickyard vineyards, but I’ll have to wait and see if that is in fact reality. They just got the keys to the place on Friday.
Derek,
We met you at last year’s Wine and Food Festival in Ottawa and ordered a case of your futures collection, which was amazing! We have enjoyed your wine at many Ottawa restos, including Erlings most recently.
Happy to know that you have opted to slow down and know that you will be missed.
Dawn
Rick,
Thanks for a level-headed and objective article free of hysteria, butthurt, xenophobia and demonizing. The fact of the matter is that Lailey was sale for quite a while and is now sold and the new owners would like to do different things than those who have known them for the last 15 years had become accustomed to. No more, no less.
Having visited Lailey many times and met Derek himself, I can vouch for the fact that it was a lovely small-size winery with very nice wines — just the type that cannot do well over the long-term in government and LCBO regulated alcohol retail. But that’s a whole other can of worms best saved for another article.
Any cry for saving the Lailey we knew and loved obscures the fact that the old Lailey wasn’t working for the partners in our province. If it did, they would likely never have sold it and tried to in fact do so for so long. I’m sad to see it go but it now belongs to the new owners and they have every right to do with it as they see fit per their own desires and business models.
I certainly hope and frankly expect that a winemaker as good as Derek will land back on his feet again, either with someone else or running his own winery. Best wishes to him.
As a loyal Lailey ‘groupie’ for many, many years, I can tell you that winery was NOT sold due to financial reasons. Donna and David Lailey sold the winery because they are getting on in years, and it was just plain too much work for them. Unfortunately neither of their children, for various reasons, wanted to take the reins and follow in their parents footsteps…. Sad really.
I just tried their wine for the first time at a restaurant in Old Chelsea….and was informed about this sale. I agree with the other posters, will be a sad loss to rip up vines and change focus. …as well as lose the winemaker.
However, being a frequent traveler to China, their wine scene can use all the help it can get. Aside from the flood of Australian wines, low grade, the local wines made in China are no better than grape juice. I live on the US side of Lake Ontario and am a fan of anything grown around the great-lakes.
Wayne
Oh dear! We just cracked a bottle of 2010 cabernet franc this evening. It was so wonderful, I went onto the Lailey website to see if by any chance I might be able to order more, & read all of this sad news. We truly hope to soon read that Derek has relocated and crafting his wonderful wines , so that we may continue to enjoy!
Lailey wines have been our family “go to” special occasion wines for years. They will be missed. :(
I find this interest. I do know the change has been a shock to everyone, myself as well as I always stop by the winery. i was told that there has definitely been a change. More bus tours, more tourist from Asia. I was told 2016 will be an icewine year and after that more table wines will be made.
Apparently this John Chang has made himself a name in BC, and is quite the entrepreneur. To believe it or not I have heard so many rumors buzzing around like they are not making any table wines just icewine. Right now they are trying to settle and are trying to make a fresh start. It is however sad that many of the regulars are not returning!
Good read but nothing said about the heart and soul David and Donna Lailey put into planting and looking after those vines for 35 +years.
A true winemaker knows that great wines begin in the vineyard!!!
The Laileys planted some of the very first vinifera wines in Ontario and also experimented with many others to find what grew best in the Niagara Region. Some flurished and some did not, but it was people like them who truly pionnered the Niagara wine industry!
As an ameteur wine maker I had the pleasure of knowing both of the personaly. Donna was as devoted to teaching winemaking to us ameteurs by way of people she knew in the industry who were unselfish with sharing thier knowledge. David toiled in the vineyard trying new growing technechs that they would learn from other areas of the world. ” Scott Henry” was one of them. This allowed for more intense fruit in wine. Quality was always a big factor of their crops!
I won 2 gold medals with their grapes . 1 for a Chardonay in Ontario, and 1 for gold Pinot Noir at a Canadian competition in 2005 held in B.C.
I will forever be in gratitude to both Donna and David for that. Thank
Chris Kraemer Kitchener Waterloo Wine Guild.
“Impromptu” music to my taste…