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A STORY OF THREE MEN
OR A FAMILY AFFAIR

The CEO of Terlato Wine Group and Paterno Wines International is not a man who rests on
his laurels; he is a visionary. He is not a man who speaks of his honors, although he has many. He is not a man impressed by quantity; he strives for quality. Above all else, Anthony Terlato is a man of family, developing a legacy for future generations. Walking into his office at
Tangley Oaks in Lake Bluff, a myriad of pictures, plaques, and memorabilia reflect the story
of a family legacy already begun – a legacy born fifty years ago on the North Side of Chicago.
    With a picture of himself and the President on one table and a picture of his granddaughter playing soccer on another, Anthony sits comfortably behind his desk, surrounded by images of family and friends. He is warm and gracious, even to a stranger, and with the contented smile of a man with no regrets he begins to share his story. It begins when Anthony’s father, Salvatore, moved from Brooklyn to open one of the first “self-serve” retail wine and spirits store in Chicago. In 1955, Anthony joined his father and began working in the family business. “My father used to say, ‘Have respect for your customer’s good taste.’ He would always look for the best and I learned from him that if you have quality products, you bring in quality people,” Terlato recalled with admiration. With the philosophy “Quality endures!” the second generation was off and running.
    A short time later Anthony eagerly jumped headlong into his father-in-law’s wine bottling and distributing company, Pacific Wines. His hard work paid off, and eight years later, he was its president. In the late ’60s, Terlato took over the helm of Paterno Imports, the family-owned company that imported olive oil and Chianti, and steered its portfolio into the vast territory of the other Italian wines. Without a hint of bravado, Anthony leaned across the desk. “Back then wine wasn’t prevalent at the dining table…and restaurants didn’t pay much attention to wine because their customers didn’t. I offered to print wine lists for the restaurants, and the list didn’t have to be just my wines. I only asked for one. I knew in most cases I would eventually get others.” He did, and promptly built Paterno into the premier importer of Italian wines in the United
States. For his achievements in introducing fine Italian wines to America, Anthony was awarded the decoration of Cavaliere Ufficiale, Motu Proprio by the President of the Italian Republic. This colorful medal, along with other honors, hangs humbly in the regal halls of Tangley Oaks.
    1981 brought the third generation of Terlatos into the business. With an innate love of wine, Anthony’s older son, Bill, joined the company by taking a position at Paterno Imports. Following in his father’s very large footsteps, in 1994 Bill was named President of Paterno, now Paterno Wines International. “Bill was a catalyst in the decision to expand the company portfolio beyond Italian wines,” Anthony related with pride. “Because of this we were able to take the company in a new direction.” Since then Paterno has expanded its portfolio to include wines from France, Australia, Chile, New Zealand, Greece and California.
    Anthony’s younger son, John, put a law degree and a Fortune 500 future on the shelf and cast his heart, hands and focus with the company in 1989. “I was glad I went to law school, but I felt that I was missing something. Billy had just figured it out sooner,” John quipped, glancing at his older brother with affection. With the same gift of vision and creativity that his brother had brought to Paterno, John was instrumental in creating new areas of opportunity for the distribution company, Pacific Wines. In recognition of these efforts, he was named its President. John’s intense focus extended the company’s
market beyond premium wines and built the distribution for Samuel Adams beer and Skyy Vodka – the subsequent sale of which generated significant capital to reinvest in the holding group’s core businesses.
    Though he gave his sons responsibility and freedom to make decisions for the company early on, Anthony also tempered the younger generation with a small plaque on his desk that read, “Take it easy; a lot happened before you got here!” This soft spoken, warm patriarch leaned back and rested his hands on the arms of the dark, leather chair. “I am very proud of my sons. If they weren’t my sons I would hire them. There is an old saying, ‘Some kids are born on third base and think that they hit a triple.’ My kids understand that they have to make a full commitment to be successful and they have the right attitude about that. Their job is to continue to grow and develop
the business, to take what they have and take it to the next level.” Together, that is exactly what the powerful yet unassuming men of this family have done.
    With innovation and vision the company continued to move forward. In 1996 the Terlato Wine Group entered the production side of the industry with the purchase of Rutherford Hill Winery in Napa Valley. Just as their wine grows better with age, so did their company. The Terlato family has continued to expand their investments into wineries in California, France and Australia. They have now ventured into every sector
of the wine industry and Anthony has been credited with “changing the way America drinks.” (Wine Enthusiast Magazine) In November of this year, the same man who stood his kids and grandkids on stools in his kitchen and taught them the flair of cooking will
be honored with Wine Spectator Magazine’s Distinguished Service Award in recognition of his impact on the industry. While this honor seemed not to affect his humble demeanor, Anthony ruminated on the responsibility it carried. “When my father owned the store we could influence people a mile in each direction. Then when we became a distributor we were able to influence twenty miles. When we became a national importer we were able to influence people from California to New York, from Detroit to Florida. As wine producers, we can influence the world.”
    The depth and breadth of the Terlatos’ influence is clearly evident at Tangley Oaks, the gracious estate in Lake Bluff that houses their corporate headquarters. When the Armour Estate was offered for sale in 1995, Anthony visited the site and felt he was
home. The next two years brought skilled craftsmen to the three-story, 26,000 square-foot mansion for the reconstruction of walls, the restoration of historic wallpapers and paint colors, and the return and restoration of original furniture and oriental rugs. “One person wanted to buy the estate and turn it into a bed & breakfast,” Bill recalled. Another
person wanted to tear it down, sell the pieces, and develop the six and-a-half acres. Instead we bought the building. I think it is a good reflection of how we want our company to be perceived in the industry but we also preserved something for the community.” A tragic demolition halted in its tracks, the grand old dame was transformed
to her former beauty. Shortly thereafter this stunning English manor home was placed on the National Register of Historic Places.
    It is a unique experience just to stride through the halls of this magnificent mansion. Colorful tapestries of burgundies and blues hang from the ceiling, calling out the names of wines. Framed golf scorecards hang proudly, giving hints as to the other passion of the occupants. Numerous photos of family and friends speak to their ties with loved ones. And then, one interesting sketch in burgundy hues quickly draws the eye. It is a unique portrait of Anthony, Bill and John appropriately painted in an unusual medium – Merlot! Stunning!
    All the Terlato men and their families live in Lake Forest. Firmly believing that they should contribute to their community, all are involved in many charitable and civic organizations from the Lake Forest Library Board, to the Botanic Gardens, to the Chicago Lyric Opera. Their strong family ties push them to be involved, to give back some of the
sweetness that life has given to them, to help the world be a better place.
    Walking through the halls of Tangley Oaks, everything quietly speaks to the success of these men. They seem to have discovered that fine yet sometimes elusive balance of values, beliefs and commitment. Working side by side throughout the years a tight bond cements their relationship. “It is fantastic. We are together all the time. We’re partners, we’re best friends, and we still have the father-son-brother relationship. It’s the best of both worlds.”
    Together. Anthony, Bill and John Terlato continue to look to the future, to new discoveries, to better wines, to opportunities still unknown. To walk through the halls of Tangley Oaks is to experience a world of commitment – a commitment to family, to community, to an uncompromising pursuit of quality and to making a difference.

By Kimberly Moss
©2004 by Forest & Bluff.

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