C.L. Butaud, a popular Austin winery with a loyal local following, is losing its St. Elmo foothold. The tasting room is set to pour its last glass at 415 E. St. Elmo Rd., Ste. 4F on July 26, 2026, after a rent increase tied to a lease renewal pushed the small operation past its comfort zone.
Co-founders Brooke and Randy Hester, who are married, told fans they could not responsibly absorb the higher rent, so they chose to walk rather than gamble the business. For now, the St. Elmo space will stay open for tastings and bottle sales as the team winds things down, and the Hesters say C.L. Butaud is not going away as a winery. Production will continue, and they are actively hunting for a new home base.
Owners Cite Rising Rents and a Tough Lease Renewal
In a July 10 letter to newsletter subscribers and social media followers, the Hesters explained that the lease renewal landed with a rent hike the business “simply wasn’t” able to shoulder, according to CultureMap Austin. The outlet reported that the tasting room will close on July 26, and that as operations wind down, the space will still host tastings and pour wine by the glass. After that, customers will be able to buy bottles online and at local shops rather than directly at St. Elmo.
Founded in Austin, Built on Texas Fruit
C.L. Butaud launched in Austin in 2014, created by Randy and Brooke Hester and named for Randy’s grandfather, Clet Louis Butaud, according to the winery’s About page. Hester trained in Napa Valley before returning to Texas, where he committed to working with fruit from 100% Texas vineyards. That focus helped the label punch above its weight and earn both local and national attention, including coverage in Austin Monthly.
St. Elmo’s Shifting Neighborhood
Once a gritty industrial strip, the St. Elmo District has steadily morphed into a cluster of restaurants, creative studios and beverage businesses. That wave of development made the area a destination and helped put C.L. Butaud on the map. It has also come with predictable side effects. Rising commercial rents have squeezed smaller operators in the district, CultureMap notes.
In their message, the Hesters pointed to that rapid commercial churn as a cautionary tale: the same growth that draws in independent producers can make long-term leases tough to afford, even for well-regarded locals like C.L. Butaud.
