On Tuesday, Treasury Wine Estates Ltd (TWE) announced it is acquiring leading luxury U.S. wine business, DAOU Vineyards, for an upfront consideration of $900 million, plus an additional earn-out of up to $100 million.
With the U.S. claiming the title of the world's largest luxury wine market, valued at $4 billion, TWE claims the acquisition will "transform the TWE business, cementing its position as a global luxury wine leader."
This acquisition provides the scale to support a future standalone Treasury Americas Luxury division that will be home to brands including DAOU, Frank Family Vineyards, Stags Leap, Beringer, Etude, and Beaulieu Vineyards.
Daou Mountain Estate, Paso Robles CA | Photo Courtesy - Daou Vineyards
Tim Ford, CEO, Treasury Wine Estates said: “The U.S. is the world’s largest wine market and we’re beyond thrilled to add DAOU to our portfolio, cementing our position as a global luxury wine leader. This is a transformative acquisition that accelerates the growth of our luxury portfolio globally and paves the way for new luxury consumer experiences. 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. With DAOU, we will be well positioned to connect with a new generation of wine lovers, combining tradition with innovation, culture-led experiences, and global distribution.”
The acquisition, which is expected to be completed by the end of 2023, includes the DAOU brand, DAOU Mountain Estate - a hospitality site, four boutique luxury wineries, and roughly 400 acres of vineyards in the coveted Adelaida District of Paso Robles.
About Treasury Wine Estates
Treasury Wine Estates (TWE) is one of the world’s leading premium wine companies and is listed on the Australian Securities Exchange. TWE’s global, multi-regional sourcing model includes world-class vineyard and production assets in internationally acclaimed winemaking regions including Barossa Valley and Coonawarra in Australia, Napa Valley in the United States, Marlborough in New Zealand, Bordeaux in France, and Tuscany in Italy. The company has a strong focus on sustainability and building a brighter future for everyone who touches the business. TWE’s global portfolio is available in more than 70 countries and includes luxury and premium brands such as Penfolds, 19 Crimes, Pepperjack, Squealing Pig, Wynns, Matua, Beaulieu Vineyard, and Frank Family Vineyards. The company employs a global team of approximately 2,500 people, with its culture best expressed by the ‘TWE DNA’ – enabling team members to be courageous, celebrate unique differences, and deliver together. For more information, please visit www.tweglobal.com.
About Treasury Americas
With its U.S. headquarters in Napa, California, Treasury Americas, is one of the largest Napa Valley growers, producing luxury grapes in 10 Napa American Viticultural Areas (AVAs) and supplying the strongest luxury portfolio of iconic American brands, such as Beaulieu Vineyard, Beringer Vineyards, Etude Winery, Frank Family Vineyards, Stags' Leap Winery, and Sterling Vineyards, that have been awarded more than 2,000 90+ scores from respected wine critics globally. With beloved wineries in California's most celebrated wine regions, Treasury Americas takes a comprehensive approach to sustainability. Recognized as the California Green Medal Leader, #1 Healthiest Employer in the Bay Area and a top Healthiest Employer nationally, Treasury Americas' commitment to supporting a prosperous future for winegrowing is clear.
About DAOU Vineyards
DAOU Vineyards is committed to producing collectible, world-class wines to rival the most respected appellations in the world. Situated on a 212-acre hilltop estate in the Adelaida District of Paso Robles, DAOU Vineyards was founded by brothers Georges and Daniel Daou in 2007 to develop the potential of Cabernet Sauvignon and other Bordeaux varieties in the region. The family estate at DAOU Mountain combines remarkable geology, favorable microclimate, and high elevation, once described by renowned California winemaker André Tchelistcheff as “a jewel of ecological elements.” As a steward of this beautiful terroir, winemaker Daniel Daou offers a quality-focused range of complex but accessible wines that are a pleasure to drink. For more information, please visit www.daouvineyards.com.
Information sourced from Treasury Wine Estates Media Release
