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Moet Hennessy ups California footprint with Colgin Cellars stake buy

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Moet Hennessy has expanded its presence in California's wine lands, taking majority control of Napa Valley's Colgin Cellars.

Coincidentally, Colgin Cellars overlooks Napas Lake Hennessey

Coincidentally, Colgin Cellars overlooks Napa's Lake Hennessey

The transaction, announced earlier today, sees Moet Hennessy, the drinks arm of luxury goods group LVMH, acquire a 60% stake from founders Ann Colgin and her husband, Joe Wender. Financial details were not disclosed, although just-drinks understands the winery has an enterprise value of around US$125m.

Colgin and Wender will continue to run the winery, along with COO Paul Roberts and winemaker Allison Tauziet.

"We share with Colgin Cellars the same desire to offer the very best quality products," said LVMH CEO Bernard Arnault. "I am, therefore, delighted to welcome Colgin's unique heritage into LVMH, reaffirming our strategy of selective acquisition of the best existing terroirs, and enriching our collection of iconic wines such as Château Cheval Blanc, Château d'Yquem or Domaine du Clos des Lambrays."

Founded in 1992, Colgin Cellars has a four-strong, "ultra-premium" portfolio, comprising:

  • Tychson Hill Cabernet Sauvignon
  • Cariad Napa Valley Red
  • IX Estate Napa Valley Red, all three of which have an SRP of US$550 per bottle, and
  • IX Estate Syrah, with a SRP of around $325 per bottle

The majority of Colgin's 3,500-to-4,000 cases per year are sold through a private client arrangement.

Moet Hennessy also owns Newton Vineyard and Chandon California - the US arm of the Domaine Chandon brand - both in Napa Valley.

Why 2017 has been the most dramatic year in living memory for wine - Click here for a just-drinks comment


Sectors: Mergers & acquisitions, Wine

Companies: LVMH Group

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