The winery is located in the municipality of Kaltern (Caldaro) in the Italian wine-growing area of South Tyrol (Trentino-Alto Adige region). It was founded in the 18th century by the noble family Di Pauli. In the 19th century, for a period of 25 years, even the entire lake was owned by the family until it was sold to the municipality of Kaltern in 1901. Anton Baron Di Pauli (1761-1830) was the Austrian Minister of Trade and earned special merits for the wine industry. Thanks to his good relations with the Viennese court, the winery was allowed to adorn itself with the title "K&K Hoflieferant" (K&K Purveyor to the Court). In 1880 Josef Baron Di Pauli bought the estate from Prince Giovanelli in Kaltern. The wines were exported as far as Russia. Various restaurants were also owned by the family, for example the oldest Viennese wine tavern "Paulusstube", which still exists today. In 1998 the family joined the Cantina Kaltern as a member.
Due to inquiries about the now no longer existing brand "Baron Di Pauli", Cantina Kaltern decided in 1999 to found its own company Baron Di Pauli as a subsidiary and to produce again as an independent brand. The responsible cellar master is Thomas Scarizuola. The Baron Di Pauli winery comprises two sites, the "Arzenhof" near Kaltern and the "Höfl unterm Stein" in Söll near Tramin. The Arzenhof comprises 10.5 hectares of vineyards at 250 to 400 metres above sea level on a moraine debris cone directly above Lake Kaltern. The Vernatsch, Lagrein, Merlot and Cabernet Sauvignon varieties are cultivated here. Of these, the three red wines "Arzio" (Merlot/Cabernet), "Carano" (Lagrein) and "Kalkofen" (from very old Vernatsch vines) are produced. The Höfl unterm Stein comprises 4.5 hectares of vineyards at an altitude of 480 to 550 metres above sea level on loamy limestone gravel soils, which are mainly planted with Gewürztraminer, as well as the Riesling and Sauvignon Blanc varieties. The white wines "Exilissi" and "Elix" (Gewürztraminer), "Enosi" (Riesling/Sauvignon), "Kinesis" (Sauvignon) and "Dynamis" (Riesling) are produced from these.