French luxury company LVMH’s Moet Hennessy division shared on Wednesday that it recently closed a deal to acquire Joseph Phelps Vineyards in Napa Valley, according to CNBC. While the financial terms of this acquisition were not disclosed, the company states that this particular vineyard was chosen for its commitment to high-quality wines and shared values with LVMH.
The longstanding, family-owned vineyard was founded in March 1973 and started with a 600-acre plot of land in Napa Valley. Joseph Phelps Vineyard has since grown to include winemaking properties on the Sonoma Coast. It’s known for its Pinot Noir and Chardonnay, which are offered at the Freestone Winery alongside the Sonoma Coast vineyard.
Moet Hennessy chairman and CEO Philippe Schaus remarked that the brand is an “iconic name and iconic winery.” It now has grown from its humble beginnings in Napa Valley to produce a whopping 750,000 bottles a year. One of its most recognizable offerings, Insignia, retails for roughly $250.
LVMH holdings oversees numerous luxury goods brands such as Givenchy, Tiffany & Co., Fendi and Céline. The Moet Hennessy division, under LVMH, manages brands such as Dom Perignon, Hennessy, and Belvedere.
Earlier this month, Foley Family Wines acquired properties held by Silverado Vineyards, another family-owned California winery, for $150 million. It’s another move by a larger wine company to build its already growing portfolio with California vineyard properties.
Joseph Phelps founded his eponymous winery on a 260ha former cattle ranch in Napa Valley in 1973.
He turned it into one of California’s most prominent producers, famed for its flagship Insignia – a Bordeaux-style blend – and its pioneering use of Rhône varieties, which kick-started the ‘Rhône Rangers’ movement in the Golden State.
The founder’s son, Bill Phelps, joined the business in 1998 and serves as executive chairman, while third-generation family members are also part of the executive management team.
Joseph Phelps owns 172ha of vineyards in Napa Valley on nine estate plots, spread across St Helena, Rutherford, Oakville, Stags Leap District, Oak Knoll District, South Napa and Carneros. It also has 40ha over two vineyards on the western Sonoma Coast.