Treasury Americas President Ben Dollard Lays Out The Case For Billion-Dollar Daou Purchase

Treasury Wine Estates made a big move in the California wine business earlier this week with its agreement to acquire Paso Robles-based Daou Vineyards for up to $1 billion. The luxury California winery had just under 600,000 cases of U.S. volume last year, according to Impact Databank. This year, it’s projected to see full-year sales of $212 million and earnings before tax and interest of $63 million, Treasury said.

Ben Dollard, president of Treasury Americas, tells SND, “Daou’s impressive recent growth trajectory reflects growing connection with consumers and we feel there’s tremendous opportunity for the brand to continue to grow in the on- and off-premise.” He noted that the brand’s distribution is highly complementary with Treasury’s, and that “Paso Robles Cabernet, in particular, is doing really well, and that’s a great opportunity for us.”

Daou bolsters Treasury’s offering in the $20 to $40 segment of the wine business, with the winery garnering almost 70% of sales from that price bracket, and another 13% from bottles retailing at $100 and over. “The Discovery and Journey tiers have played a central role in building the brand,” said Dollard. “The Soul of a Lion is an innovative, luxury wine, and the crown jewel of the portfolio. Daou Reserve and Patrimony are introducing consumers to the best that Paso Robles has to offer, with Patrimony sitting comfortably alongside some of the world’s most renowned ultra-luxury wines.” The Soul of a Lion retails at $150 a bottle, while Patrimony is positioned around $275.

Dollard said there’s plenty of room for Daou to continue the strong growth that’s seen it nearly double its U.S. volume since 2019. “Daou just planted several hundred acres in the coveted Adelaida district and are one of the largest landowners in that area,” he noted. “There is absolutely room to scale and grow, particularly with our Reserve Cabernet, Soul of a Lion, and Patrimony.”

The e-commerce and tourism aspects of Daou were also attractive, Dollard explained, pointing to the winery’s Daou+ app, which he called a gamechanger in terms of connecting with consumers across multiple demographics. “It’s particularly appealing to the next generation consumer,” he said. Paso Robles, Dollard added, is rapidly gaining adherents both in the market and in terms of visitors to the region. “It welcomes millions of visitors each year and is one of the fastest-growing wine regions in the U.S.,” he said, with the Daou Mountain hospitality experience being a key draw within the Paso Robles landscape.—Daniel Marsteller

Tagged : Daou, Treasury Wine Estates

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