Treasury Wines thinks it has found its next Penfolds in California
Penfolds has long been the jewel in the crown of Treasury Wine Estates. Has it finally found another global hit?
The lucrative but difficult to crack US market has for many years been a source of headaches for Treasury Wine Estates (and its predecessors). But Australia's biggest winemaker now believes it has finally found a solution, and potentially, its next global hit.
The ASX-listed company, which is eagerly awaiting a return to its most important market China after a three-year lockout, will shell out up to USD1 billion ($1.6 billion) for top shelf US winemaker Daou Vineyards, spread out across 400 acres in Paso Robles on the California coast.
CEO Tim Ford hopes Daou, which currently sells just 2% of its wine overseas, would follow in the footsteps of its iconic South Australian Penfold's brand and become the company’s next global success story.
“Under our stewardship we plan to take Daou to the world and expand its global reach to become the next brand of international scale, global luxury credentials, as we have done with Penfolds,” he said on a Tuesday conference call.
