DAOU property in SLO purchased by local names. What’s in store for the facility?
As a global wine giant downsizes its holdings in San Luis Obispo County, two local winemakers combined forces and are taking advantage of its newly available property in Edna Valley.
On Tuesday, Mercenary Premier announced its acquisition of the former DAOU Vineyards production facility located at 4915 Orcutt Road in San Luis Obispo, recently put on the market by Treasury Wine Estates.
Although Mercenary Premier might be a new name to SLO locals’ ears, its owners Jason Fullmer and Josh Baker are no strangers to the Central Coast wine scene.
As an expansion of Fullmer’s existing mobile bottling service, Mercenary Canning Solutions, Baker joined Fullmer with winemaking expertise at businesses like E & J Gallo, Diageo Chateau & Estates and Chalone Wine Group among others.
Together, the two hope to launch a state-leading wine production that offers full custom vinification services at its new facility.
“We were searching for an opportunity for Jason to be able to expand his business, and I was searching for an opportunity to take my 25-plus years of reputation, success and contacts to put together something that would serve as the next stage for my professional career, too,” Baker told The Tribune. “And Mercenary Premier was born out of that.”
The facility won’t have a tasting room or its own wine brand though, Baker said. It will solely focus on the winemaking and bottling for other vineyards and companies.
“You’ll find that even wineries that have their own brands typically utilize some of their capacity to do custom crush work for other people, so it’s big business. I mean a lot of people do it. The difference for us is that it’s exclusively what we do,” Baker said.
According to the 4915 Orcutt Road listing, the 48-acre property is complete with a 43,218-square-foot production facility and priced at $15 million, although Baker declined to comment how much Mercenary Premier purchased the facility for.
Being move-in ready, the property has a full-scale winery processing facility capable of high-end red and white wine production, barrel and tank aging programs, case good storage and dedicated winemaking support, which will be ready to go for harvest 2026.
With an opening so soon, the company is currently hiring eight positions including operation technicians, both seasonal and permanent with a pay range of $20-26, as well as a laboratory manager with a salary for $72,000-$85,000 per year, according to its website.
By the end of the year, it hopes to scale 12–14 jobs.
Global wine giant downsizes in SLO
Mercenary’s acquisition of the 48-acre plot was thanks to Treasury Wine Estates, owner of Paso Robles’ DAOU Vineyards, amid its world-wide downsizing.
Fortunately for DAOU Vineyards, it’s safe after Treasury deemed it one of the company’s three “power brands,” along with Penfolds and Matua, which the company said “will receive increased investment and support to accelerate growth across multiple markets.”
The global giant bought DAOU in 2023 for nearly $1 billion.
Even though Treasury will keep the DAOU label, the company is downsizing in SLO County — as it is elsewhere in California — by selling at least the 4915 Orcutt Road property, alongside potential others in Paso Robles.
While Treasury provided few local specifics, it also described the reduction as including a “divestment and exit of leases in Napa Valley, Sonoma and the Central Coast, representing a substantial reduction in planted hectares.”
According to its news release, Treasury’s downsizing is a response to a societal shift around consuming wine — one that has forced numerous companies to evolve their marketing strategies and product offerings to appeal to generations that aren’t drinking as much.
“We’re reshaping Treasury Wine Estates to where we see the strongest long-term demand and growth opportunities in luxury red, luxury white, and more contemporary wine experiences,” TWE Chief Executive Officer Sam Fischer said. “At the same time, we’re also seeing strong growth in lighter styles, more relaxed social occasions and moderation trends, particularly among younger consumers.”
But Mercenary owner Baker said these trends don’t worry him.
“I think one of the things that Jason and I are proudest of is that in the midst of this drastic mammoth wine company downsizing that we’re seeing across the industry, we’re really excited and proud to have two San Luis Obispo locals come together and be able to pull off an acquisition like this and start a business like this right in our own backyard,” he said. “We’re incredibly devoted to the Edna Valley and the Central Coast, and we are just exceptionally proud and excited to be here.”
