Treasury Wine Estates (TWE) confirmed the completion of its majority acquisition of Château Lanessan. The acquisition is the latest step in bolstering Penfolds multi-regional luxury wine portfolio, doubling the existing production capacity in France.
Château Lanessan is one of the oldest estates in Bordeaux. The purchase includes 390 hectares of land with 80 hectares of Haut-Médoc-appellated vineyards planted with typical Bordeaux varieties of Cabernet Sauvignon, Merlot and Petit Verdot.
This latest acquisition follows the TWE’s acquisition of US Frank Family Vineyards for $434 million in November last year. The deal took TWE’s share of the US luxury chardonnay market from 3.7 to 9.4 per cent, making it the third biggest player in the US.
Reinforcing TWE’s multi-regional sourcing strategy, the acquisition also enhances Penfolds position as a global luxury icon. The reception from critics and consumers for Penfolds wines sourced from multiple 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 collaborating with the Bouteiller family and winemakers to enhance the Château’s production capability and relationships with the local Bordeaux community.
“The region’s winemaking 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 winemaking traditions,” said King.
Kerrin Petty, chief supply officer for Treasury Wine Estates, said “The majority acquisition of Château Lanessan is an exciting addition to the Treasury Wine Estates portfolio in Europe. Increasing our production capacity with such an historic site will support our future growth plans as we respond to consumer demand for wines across our portfolio of brands, including Penfolds.”
In addition to producing Penfolds wine, the winery will continue to produce wine under its Château Lanessan, Les Caleches de Lanessan, and Château de Sainte Gemme labels, which will be distributed through existing channels.
More information about the property’s restoration and development will be available in 2023.
