Photo: Colgin Winery
LVMH Moet Hennessy Louis Vuitton SA, the world's biggest luxury goods company, has agreed to buy a 60 percent stake in Colgin Cellars, a prime Napa Valley winery owned by founder Ann Colgin and her husband Joe Wender, who will retain a 40 percent share of the property.
The acquisition gives LVMH control of the estate's four wines, Tychson Hill Cabernet Sauvignon, Cariad Napa Valley Red Wine, IX Estate Napa Valley Red Wine and IX Estate Syrah, according to a statement on the LVMH website. Colgin and Wender will continue to lead the winery team, along with Chief Operating Officer Paul Roberts and Winemaker Allison Tauziet.
While the purchase price was not disclosed, Paris-based newspaper Les Echos reported on its website that LVMH was paying in the region of 60 million euros ($70 million dollars) for its stake, a deal which would value the entire estate, founded in 1992, at close to $120 million.
``The winery's success was built on its ultra-premium, limited production wines, all of which are consistently highly rated,'' LVMH said in its statement. ``The wines are sold primarily through an exclusive client list and also distributed to high-end restaurants and retailers in the U.S. and over 30 countries globally.'' Back vintages of Tychson Hill can sell for $500 a bottle or more, according to Winesearcher.com
LVMH owns a stake in Chateau Cheval Blanc in Saint Emilion, and also controls Chateau d'Yquem in Sauternes, Domaine du Clos des Lambrays in Burgundy, Chandon and Newton in California and vineyards in Latin America. Its Champagne brands include Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Krug, Ruinart and Mercier.