Treasury Wine Estates (TWE) has expanded its ambition to be a global leader in luxury wine with the acquisition of the leading luxury wine brand in the United States, DAOU Vineyards, for an upfront consideration of US$900 million.
TWE said DAOU Vineyards is the fastest growing luxury wine brand in the US and the acquisition will strengthen Treasury America’s position as a leading and iconic US luxury wine company.
Tim Ford, CEO of Treasury Wine Estates, said: “The US is the largest wine market in the world and we’re thrilled to add DAOU to our portfolio, cementing our position as a global leader in luxury wine.
“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 of growth, and we have big 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 by combining tradition with innovation, cultural experiences and global distribution.”
Founded in 2007 by brothers and co-owners Georges and Daniel Daou, DAOU is based in the renowned US wine region of Paso Robles, California. The brand is recognized 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 of DAOU, said: “The final frontier has always been international, and as part of the Treasury Wine Estates portfolio, we have unlocked the potential to be among the highest quality wines available to consumers worldwide.
“In Treasury Wine Estates, we have found a partner who 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 best 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 U.S. as part of its ongoing global sourcing strategy.
The acquisition, which is expected to close by the end of 2023, includes the DAOU brand, DAOU Mountain Estate and hospitality location, four boutique luxury wineries and approximately 400 acres of vineyards in the Adelaida district of Paso Robles.
The agreement is also subject to an additional payment of $100 million if certain NSR targets meet pre-agreed growth targets in 2025 and 2027.
