When De Negoce, a direct-to-consumer wine company, burst onto the scene in 2020, it sparked a unique wine-buying craze. The promise was simple yet compelling: high-quality Napa Cabernet for as low as $10 per bottle, though buyers had to commit to purchasing a case before the wines were even bottled. However, the twist was that customers wouldn’t know the name of the winery that made the wine, fueling both curiosity and excitement among wine enthusiasts.
The company’s founder, serial entrepreneur Cameron Hughes, built a dedicated following with this unconventional business model. During the height of the COVID-19 pandemic, a time when many Americans turned to wine in record numbers, De Negoce customers formed an online community. They exchanged tasting notes, tracked wine releases, and pounced on the latest deals the moment they were announced. Some fans, like Matt Turk from San Diego, admitted to purchasing more than 150 cases. “I’ve probably bought well over 150 cases at this point,” Turk said.
However, after four years of rapid growth and customer devotion, things began to change. Hughes, the charismatic leader who had been the face of the brand, seemingly vanished. He stopped signing emails and posting on online forums, leaving loyal customers feeling unsettled. Logistics issues began to mount, with wines arriving late or in unsuitable shipping conditions, such as excessive heat. Some customers also reported more inconsistencies in the wine’s quality.
Many in the De Negoce community suspected something was amiss and began asking questions. They contacted local news outlets, urging them to investigate. In early 2024, The San Francisco Chronicle took on the story, uncovering a relatively simple explanation. Hughes had sold De Negoce to Martin Ray Winery, a Sonoma-based company, and quietly stepped away from the business.
“I was looking to cash in, to be honest with you,” Hughes said. After working 80-hour weeks to launch and grow De Negoce, he decided it was time to shift focus to other ventures, such as his Wagyu steak company. Hughes also remarried, marking a personal and professional pivot.
The sale marked a significant transition for De Negoce, raising questions about whether the brand could maintain the same appeal without its founding figure. Hughes had built trust with his customers by positioning himself as an expert in sourcing top-tier wines at bargain prices. His deep personal involvement in the business was key to the early success of De Negoce.
Courtney Benham, the new owner of De Negoce and founder of Martin Ray Winery, has sought to reassure customers that the integrity of the brand will be preserved under new leadership. Benham, a veteran of the wine industry and former co-founder of the popular Blackstone Merlot label, emphasized that his team would continue to uphold Hughes’ sourcing principles. “I think our palates are maybe a little more exact,” Benham said, suggesting that the quality of De Negoce wines may even improve under his leadership.
Benham’s acquisition of De Negoce was part of a broader strategy to expand his wine portfolio. In 2023, he purchased a 51% stake in the company before acquiring full ownership in January 2024. To lead De Negoce forward, Benham brought in two experienced members from the original Cameron Hughes Wine team: Andre Yen and Ryan Watts. They have updated the company’s website, revamped its label design, and emphasized that they are maintaining the same wine sourcing processes that made De Negoce popular.
Despite reassurances, some longtime customers remain skeptical. Carter Zinn, a lawyer from Mill Valley, noted that he has noticed an increase in “misses” among recent De Negoce releases. “I do think there’s been more misses lately,” he said. Laura Cook, another De Negoce customer, echoed the sentiment, saying the brand no longer felt as personal since Hughes stepped back.
Wine prices have also risen, a reflection of shifting conditions in the bulk wine market. De Negoce’s early success was partly due to a surplus of California grapes in 2020, allowing Hughes to secure quality wines at low prices. The price of bulk wine surged after the devastating wildfires that followed, leaving many customers wondering if they had missed the peak moment.
Despite these challenges, De Negoce remains a viable business. According to Yen, the company continues to have tens of thousands of regular customers. However, some buyers, like Chicago-based customer Rohit Bhan, have slowed their purchases, noting that after a few years of enthusiastic buying, their cellars are now overflowing with unopened cases of 2018 Cabernet. “At a certain point, you end up with too many bottles of 2018 Cabernet,” Bhan said.
The question remains whether Benham and his team can recapture the magic that made De Negoce a sensation in its early days. For now, the wine-buying community watches closely, with many wondering if De Negoce’s formula for success will survive without its founder at the helm.
You Might Be Interested In:
- How Much Sugar Does Pinot Noir Have?
- What is a Good Champagne to Make Mimosas?
- How Long Does Prosecco Last in the Fridge Unopened?
