Treasury Wine Estates (TWE) has purchased DAOU Vineyards for $1 billion.
DAOU Vineyards was established in Paso Robles in 2007 by brothers Georges and Daniel Daou.
The acquisition by Treasury Wine Estates exceeds the amount spent by E.&J. Gallo to acquire Rombauer Vineyards earlier this year, according to Jenny Heinzen of Vineyard Professional Real Estate.
DAOU is known as the fastest-growing luxury wine brand in the United States, according to a press release from Treasury Wine Estates that states, "The acquisition will strengthen Treasury America’s position as a leading and iconic U.S. luxury wine business, increasing its presence with both wholesale and retail channel accounts and leveraging the strength of its luxury footprint to drive expansion across the U.S. with plans to launch a Napa-sourced brand tier."
TWE adds that it plans to take DAOU international, "bringing its global marketing and distribution expertise to their exceptional portfolio with the vision of becoming the next globally scaled luxury wine brand."
The acquisition is expected to be completed by the end of 2023 and includes the DAOU brand, DAOU Mountain Estate and hospitality site, four boutique luxury wineries, and approximately 400 acres of vineyards.
The Daou brothers will reportedly remain involved in the business with Georges as founder and Daniel as founder and chief winemaker.
