The luxury-goods maker LVMH Group announced that it has acquired a 60% stake in the Napa Valley wine company Colgin Cellars.
The founder of Colgin Cellars, Ann Colgin and her husband Joe Wender have chosen to partner with the luxury-goods maker to preserve their long-term commitment to their Cabernet and Syrah wines, according to LVMH.
Under the agreement, Colgin and her husband will continue to hold 40% equity in the business and maintain their leadership functions. They will lead the company along with COO Paul Roberts and winemaker Allison Tauziet.
The wine company was founded by Colgin in Napa Valley 25 years ago. It produces four wines, ‘Tychson Hill’ Cabernet Sauvignon, ‘Cariad’ Napa Valley Red Wine, ‘IX Estate’ Napa Valley Red Wine and ‘IX Estate’ Syrah.
The winery is located at the northern end of IX Estate in the Pritchard Hill area of Napa Valley, which remained untouched by the recent Napa Valley fires, according to LVMH.
Exclusivity
The wines are sold primarily through an exclusive client list and also distributed to high-end restaurants and retailers in the US and to over 30 countries worldwide, said LVMH.
“After a social introduction to Mr Arnault several months ago and discussions with the LVMH team, I realized that I could not find a better partner for Colgin Cellars to preserve our founding spirit and our exquisitely handcrafted red wines, into the future,” said Ann Colgin. “We are happy to join the LVMH Group to continue to offer our loyal customers the unique and high-end experiences we’ve been creating for them, for over a quarter of a century.”
“We share with Colgin Cellars the same desire to offer the very best quality products,” said Bernard Arnault, chairman and CEO of LVMH. “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.”
Last month, the wine and spirits arm of LVMH recorded an organic revenue growth of 8%, to €3.51 billion in the first nine months of the year. The company at the time said it was planning targeted geographic expansion in the most promising markets.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
