News Alert: Treasury Wine Estates To Acquire Daou Vineyards For Up To $1 Billion
October 30, 2023Treasury Wine Estates has made another move in the luxury California wine category, agreeing to acquire Paso Robles-based Daou Vineyards for up to $1 billion. The deal includes an initial payout of $900 million, with an additional $100 million earnout. It’s expected to close in mid-December.
Treasury says the deal fills a key portfolio area in the $20-$40 range, and strengthens its luxury portfolio in the $40+ range. According to Impact Databank, Daou has been among the fastest growing wine brands in the U.S. market lately, expanding from 305,000 cases in 2019 to 590,000 cases last year. In addition to its namesake brand, the winery is known for its Cabernet-based Patrimony wines.
The acquisition includes the Daou brand, Daou Mountain Estate and hospitality site, four boutique luxury wineries and around 400 acres of vineyards in the Adelaida District of Paso Robles. Georges and Daniel Daou will remain involved in the business, with Georges as founder and Daniel as founder and chief winemaker.
“This is a transformative acquisition that will accelerate the growth of our luxury portfolio globally and paves the way for new luxury consumer experiences,” said TWE chief executive Tim Ford. “Daou is an award-winning luxury wine business with an outstanding track record for growth and we have grand plans for Daou to become the next brand with the international scale and luxury credentials of Penfolds.”
“Daou has done an incredible job with regards to the experience at Daou Mountain as well as engaging with younger wine consumers across the country, and we see very significant opportunity to take that experience globally,” added Ben Dollard, president of Treasury Wine Estates Americas.
The acquisition marks another play in Treasury’s premiumization strategy, following its $315 million acquisition of California’s Frank Family Vineyards in late 2021.—Daniel Marsteller
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