TWE finalizes the acquisition of Château Lanessan
Treasury Wine Estates (TWE) has confirmed the completion of its majority acquisition of Château Lanessan. This acquisition is the latest step in strengthening Penfolds’ multi-regional luxury wine portfolio, doubling existing production capacity in France.
Château Lanessan is one of the oldest estates in Bordeaux. The purchase includes 390 hectares of land including 80 hectares of vines in the Haut-Médoc appellation planted with typical Bordeaux grape varieties of Cabernet Sauvignon, Merlot and Petit Verdot.
This latest acquisition follows TWE’s acquisition of the United States’ Frank Family Vineyards for $434 million in November last year. The deal increased TWE’s share of the US luxury chardonnay market from 3.7% to 9.4%, making it the third-largest player in the United States.
Reinforcing TWE’s multi-regional sourcing strategy, the acquisition also reinforces Penfolds’ position as a global luxury icon. Critic and consumer reception for Penfolds wines from several regions has been particularly strong, including those made in partnership with Dourthe Bordeaux.
Tom King, managing director of Penfolds, said the company looked forward to working with the Bouteiller family and winemakers to improve the Château’s production capacity and relations with the local Bordeaux community.
“The region’s wine traditions complement the quality and innovation that Penfolds is known for, and we have ambitious plans to invest in the historic property and welcome wine lovers to experience the region’s unique wine traditions,” said said King.
Kerrin Petty, Procurement Director of Treasury Wine Estates, said: “The majority acquisition of Château Lanessan is an exciting addition to Treasury Wine Estates’ portfolio in Europe. Expanding our production capacity with such a historic site will support our future growth plans as we meet consumer demand for wines from our portfolio of brands, including Penfolds.
In addition to producing Penfolds wine, the winery will continue to produce wine under its labels Château Lanessan, Les Calèches de Lanessan and Château de Sainte Gemme, which will be distributed through existing channels.
More information on the restoration and development of the property will be available in 2023.