Treasury Wine Estates (TWE), a leading name in global winemaking, has expanded its portfolio with the acquisition of Daou Vineyards, a Californian gem, for a staggering $1 billion. This strategic move is set to anchor TWE’s presence in the U.S. premium wine market.
The vineyard, established by Lebanese-American siblings Georges and Daniel Daou, has evolved from humble beginnings in a garage to a 400-acre estate.
Their journey began in Lebanon, from where they emigrated during the civil unrest of the 1970s, eventually finding their passion for winemaking in France, and later, California.
TWE’s President, Ben Dollard, recognizes Daou Vineyards’ pivotal role in their premium strategy, aligning with TWE’s vision to lead the premium wine industry.
The acquisition, including $900 million upfront and $100 million performance-based incentives, reflects TWE’s commitment to growth amidst a shifting American consumer trend towards high-end wines.
Despite market challenges, including hefty tariffs by China on Australian wines, TWE remains optimistic about global expansion, with Daou Vineyards playing a crucial role in this international venture.