Moët Hennessy Expands Wine Portfolio With Provence AcquisitionMay 20, 2019
Moët Hennessy has bolstered its wine holdings, agreeing to acquire Cru Classé Côtes de Provence winery Château du Galoupet for an undisclosed sum. The deal is expected to close in the second half of this year.
Château du Galoupet has 68 hectares (168 acres) of planted vineyards and is known for its rosé, which comprises 90% of production. Red and white wines each account for 5% of volume. Moët Hennessy says it intends to expand Galoupet’s operations by developing the estate’s 89 unplanted hectares (220 acres).
The move gives Moët Hennessy exposure to the exploding Provence rosé category, which surpassed 2 million cases in the U.S. on 14% growth last year. At the beginning of this decade, Provence rosé amounted to just 123,000 cases in the U.S. Export value of Provence rosé to the U.S. also set a new all-time high last year, increasing 17% to €134 million ($152m).
While Moët Hennessy’s wine range is best known for Champagne brands including Moët & Chandon, Veuve Clicquot, Dom Pérignon, Ruinart, and Krug, its portfolio also includes a number of upscale wine labels from around the globe, including Chandon, Newton, Cheval des Andes, Terrazas de los Andes, Cloudy Bay, Cape Mentelle, Numanthia, and Ao Yun. The company also took a 60% stake in Napa’s Colgin in 2017. With the addition of Galoupet, the French drinks giant will now look to leverage its luxury marketing expertise in the thriving Provence rosé segment, taking on established players like Château d’Esclans, Miraval, and others.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.