Treasury Wine Estates (TWE) has expanded its ambition of being a global luxury wine leader, with the acquisition of leading luxury wine brand in the United States, DAOU Vineyards for an upfront cost of US$900m.
TWE said DAOU Vineyards is the fastest-growing luxury wine brand in the US and that the acquisition will strengthen Treasury America’s position as a leading and iconic US luxury wine business.
Tim Ford, CEO, Treasury Wine Estates said: “The US 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.”
DAOU was founded in 2007 by brothers and co-proprietors Georges and Daniel Daou and is based in the renowned US winemaking region of Paso Robles, California. The brand is recognised for its Cabernet Sauvignon-based Patrimony wines and its tasting room on DAOU Mountain, which attracts 90,000 visitors annually.
Georges and Daniel Daou, Founders, DAOU said: “The last frontier has always been international, and as part of the Treasury Wine Estates portfolio, we have unlocked the potential to be amongst the highest-end wines for consumers to enjoy globally.
“In Treasury Wine Estates, we have found a partner that not only understands the value of our brand and the premium assets we have cultivated but also the importance of ensuring that we maintain a relentless focus on quality and craftsmanship as we step into our future.
“Both companies are change leaders and by joining forces, we will continue to boldly disrupt the industry and bring the very best in wine and luxury experiences to consumers around the world.”
TWE said it plans to take DAOU to the world, reaching new international markets for luxury wine as well as exploring opportunities outside the US as part of its ongoing global sourcing strategy.
The acquisition, which is expected to be completed by the end of 2023, 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.
The deal is also subject to an additional US$100m payment in the event that certain NSR targets deliver pre-agreed growth targets over 2025 and 2027.