This development follows a string of acquisitions of top-quality wineries by luxury conglomerates. In October 2017, Francois Pinault’s company Artemis purchased historic Clos de Tart in Burgundy. That same month, the Chanel family purchased Chateau Berliquet in Saint-Emilion. Importantly, Colgin’s sale also represents an ongoing trend of iconic, founder-owned wineries in Napa trading to new corporate owners. In 2014, Artemis purchased Eisele Vineyard (née Araujo), a winery founded in 1990, from Bart and Daphne Araujo. Earlier this year, Constellation Brands purchased Schrader Cellars from Fred Schrader (coincidentally, Ann Colgin and Fred Schrader were married until the mid-1990’s and founded Colgin – then named Colgin-Schrader – together).
The Colgin deal is a reminder that while Napa began as a small farming community (and in some circles, still feels like one), labels such as Colgin are luxury brands at their core. Ann Colgin and Joe Wender have no children, and thus a highly lucrative offer that enables them to continue owning and operating their business (and also paves a path for an eventual exit as they age) must have been too good to pass up. The Colgin team will remain intact, and Ann will remain at the helm as CEO. Moreover, LVMH, with experience selling luxury brands around the globe, can more easily place Colgin products into the hands of consumers in Asia and other foreign markets. Their expertise will be a huge value-add to Colgin’s existing marketing and sales operations.
I do wonder what an increasing number of corporate deals will mean for Napa Valley. For one, I question whether consumers will care to know and understand the personalities and histories behind this region’s storied vineyards, or whether outstanding wines can continue to stand on their own as luxury brands even after the founders move on.
More details on the transaction here.
