LVMH, the luxury goods company whose portfolio ranges from Louis Vuitton handbags to Dom Pérignon champagne, has made their first acquisition in Burgundy. The group has purchased Domaine des Lambrays just outside of Morey-Saint-Denis with its 21.9 acres of vineyards, including the Clos des Lambrays grand cru as well as several premier cru sites. Although the Clos des Lambrays has produced wine since the 14th century, the sellers were the Freund family who have owned it since 1996. The price was not disclosed. Production is about 35,000 bottles with an average retail price of $165 according to LVMH. Thierry Brouin, the estate’s chief winemaker who has overseen the last 35 vintages, will stay with LVMH.
Even though the holding is relatively small for the publicly-traded LVMH–a bauble for owner Bernard Arnault–it does signal a possible shift to corporate ownership. Part of Burgundy’s appeal to wine enthusiasts is that, in contrast to an area of corporate ownership such as the Médoc, the owners actually live on the ground and make the wines. Whether this is the thin edge of the wedge of corporate ownership remains to be seen. But one thing is for sure: LVMH is not a discounter, so don’t expect any price declines.
More: “LVMH acquiert le grand cru de Bourgogne Clos des Lambrays” [lesechos.fr]
Photo credit: Arnaud 25 / Creative Commons