(Wines&Vines) - Mergers and acquisitions, plus explosive growth of brands, transform the state's industry

Portland, Ore—Oregon is a special place, runs the conventional line: it may not have the perfect climate for wine (the claim neighboring Washington makes for itself) but it is home to small, family-run estate wineries.

 While heavyweights like Ste. Michelle Wine Estates and Precept Wine call the Seattle area home, 81% of the 773 wineries in Oregon produce less than 5,000 cases a year, according to the Wines Vines Analytics winery database. Ste. Michelle typically processes two-thirds of the Washington grape harvest, or close to 8 million cases annually, whereas one of Oregon’s largest vintners, A to Z Wineworks, produced a mere 375,000 cases last year.

 But both Ste. Michelle and Precept have holdings in Oregon, and Jackson Family Wines of California has made big moves into the state through acquisition. Smaller wineries are sitting up and taking notice, bulking up even as out-of-state capital continues to flow in.