Caymus Vineyards, a winemaker based in California's Napa Valley, has acquired a majority stake in Dry Fly Distilling Inc., a move that's expected to help the Spokane-based spirits maker grow, says Patrick Donovan, newly appointed president of Dry Fly. 

“This (partnership) is just really going to help us move to another level that would have been very hard to get to independently,” Donovan says. “The synergies between the two companies are really unique, and it’s just a really good fit for us.” 

Donovan declines to disclose details of the agreement, which was signed by both parties on Friday, August 9, at the 19,000-square-foot distillery, at 1021 W. Riverside in downtown Spokane.  

Caymus Vineyards is owned by the Wagner Family, who descend from a long line of grape growers and winemakers and have a history in California’s Napa Valley dating back to the 1850s. Charlie Wagner, owner and winemaker, and Mike Carlson, vice president and general counsel at Caymus Vineyards, have joined Dry Fly’s board of directors. 

Don Poffenroth, co-founder of Dry Fly, will remain involved with the company, says Donovan. Terry Nichols, vice president of sales, has retired, clearing the path for Donald Kidd to step in as the new vice president of sales and marketing. 

While the acquisition has been in the works for the past eight months, Dry Fly has been working on a whiskey project with the winemakers for the past decade. The wheat for the whiskey, expected to be released next year, was grown on the Wagner family's farms, and the whiskey itself is being finished in one of their special selection cabernet sauvignon wine barrels, Donovan says. 

“We started working with the Wagner family more than a decade ago and have loved growing and nurturing this partnership,” Poffenroth says. “We share the same vision and are proud to put Dry Fly and its future growth in their hands. Also, as I approach retirement, I hope it will free me up to do a little more fishing.” 

As reported previously by the Journal, Dry Fly Distilling was founded in 2007 by Poffenroth and Kent Fleischmann, each with decades of experience in marketing in the food industry. Fleishmann is no longer with the company. 

Dry Fly has 24 employees, including a management group, production workers, restaurant employees, and support staff. It produces 100,000 gallons of alcohol a year and ships to 35 U.S. states. 

Projected annual revenue for 2024 is $4 million, the same as the year-earlier revenue of $4 million, says Donovan, who was the company's first employee. 

“We will see what happens,” Donovan says. “Part of this is to bring a strategic partner to help us grow.” 

Caymus Vineyards was established in 1972 by Chuck Wagner and his late parents, Lorna and Charlie Wagner Sr. The company remains family-owned, with two of Chuck Wagner’s children working alongside him, Charlie Wagner and Jenny Wagner. They operate two wineries that are open to the public, Caymus Vineyards in Rutherford, California, and nearby Caymus-Suisun Winery, in Suisun Valley, California. 

“While my primary focus is making wine, it’s been thrilling over the past decade to work with Dry Fly on one of my favorite projects—creating a wheat-based whiskey aged in our wine barrels that reflects fine craftsmanship and the highest standards of quality and taste,” Charlie Wagner says.

He adds, “Now we are taking our collaboration to the next level. Assuming a bigger stake in the company speaks to my excitement over Dry Fly’s vision, passion, and expertise, and make products that truly stand out in the market.”