Treasury Wine in $1.6b bet on California’s Daou Vineyards

Simon EvansSenior reporter

Updated Oct 31, 2023 – 12.19pm, first published at 9.12am

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Key Points

Why it matters: Penfolds owner Treasury Wine Estates is buying Californian luxury wine group Daou Vineyards for $1.57 billion.
Daou Vineyards was established in 2007 in the Paso Robles region in California.
It sells wines in higher end price brackets between $US20 to $US500 per bottle.

The chief executive of Treasury Wine Estates aims to turn California’s high-end Daou Vineyards, which is being acquired in a deal worth up to $US1 billion ($1.6 billion), into a global brand like the company’s flagship Penfolds.

Tim Ford said on Tuesday that Daou was generating 98 per cent of its sales in the United States, but it had the cachet and quality to go global.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.