Australian-based wine conglomerate Treasury Wine Estates Ltd is set to acquire San Luis Obispo County-based Daou Vineyards for $900 million.
Driving the news: The acquisition includes the Daou brand, Daou Mountain Estate, four luxury wineries, and around 400 acres of vineyards in Adelaida District of Paso Robles.
- The acquisition aligns with Treasury Wine Estates’ strategy to emphasize its luxury portfolio and expand its presence in key growth markets, particularly in the United States.
- The deal is expected to accelerate Treasury Wine Estates’s focus on a portfolio that is increasingly luxury-led with a greater presence in key growth markets such as the U.S.
- According to Joel Peterson, executive director of the Paso Robles Wine Country Alliance, the acquisition is a major development for the growth of the Paso Robles wine market.
- Georges and Daniel Daou are expected to continue to be actively involved in the business after the transaction is completed.
The backstory: Daou Vineyards was founded in 2007 by brothers Georges and Daniel Daou and has been the fastest-growing luxury wine brand in the U.S. trade over the past year, known for its award-winning Cabernet Sauvignon-based Patrimony wines, consumer profile, and luxury experiences.
- This acquisition follows other recent wine business transactions in the region in recent years including E&J Gallo’s purchase of Denner Winery and Constellation’s acquisition of Booker Winery.