The Billion Dollar Question: What Keeps The Daous Inspired After Landmark Sale?
It's a rare occurrence when a company sells for $1,000,000,000—that's nine zeroes—no need to grab your glasses. THREE COMMA CLUB. This is especially unique in the wine world! Known as a unicorn in the tech world, reaching a valuation of a cool bill is a very rare feat, and being acquired for $1B is even more newsworthy. Treasury Wine Estates made a splash heard 'round the wine-world with the news that they acquired DAOU Vineyards and its assets for up to one billion dollars in early November. “TWE’s ambition is clear: to become the world's most admired premium wine company,” the Australian based company said in a press release. With this purchase, they accomplish the goal of their ambition.
DAOU was founded by Georges and Daniel Daou, Lebanese nationals who fled during the county’s civil war in the 1970s. A relocation to France is where the brothers developed an interest in winemaking and a deep love for wine, next making a move to San Diego. It was there the Daous started a network technology company, Daou Systems, which was acquired in 2005 by Proxicom. The deal was estimated to be worth $22 million, and allowed the wine obsessed brother Daniel to buy a dream property in Paso Robles, California. The location clocked about three hours south of the San Francisco Bay Area, and he was able to convince with his brother Georges to join on as a business partner. The brothers grew the winery and vineyard operation to where it now stands—roughly 400 acres of vineyard land, four wineries, and a magical hospitality center with one of the best views in all of California, if not the world.
So after a second successful business acquisition for the Daous, this time on a global scale, you may be wondering what they are up to next and how they stay inspired?
I had the pleasure of interviewing Georges Daou, Co-Proprietor of DAOU Vineyards. The future of all things DAOU seems very very bright.
Courtesy of DAOU Family Estates
When my brother and I first set foot on what is now known as DAOU Mountain, the sheer beauty of the landscape unfolded, signaling the dawn of a new chapter. This journey had its roots in a tumultuous period of our lives, where the loss of our mother, father, and sister within a year led us in search of Life 2.0—a quest that drew us to the serene countryside of the Adelaida District, reminiscent of our heritage and childhood.
Our upbringing in France, with long family meals with wine on the table, instilled our deep appreciation for wine, forever connected to our family’s past, cherished stories, and shared experiences. When my brother expressed his desire to craft wine, I felt a sense of destiny. I realized that Daniel’s winemaking expertise, coupled with my vision for the brand, created a synergy that we believed could produce something extraordinary.
The decision to purchase this remarkable terroir, which would evolve into the iconic DAOU Mountain, marked a turning point in our lives. After purchasing the property, I drove my car through a hayfield that was as tall as my side window, and all of a sudden, what appeared in front of me was the most beautiful painting I'd ever seen. I looked out over the rolling mountain range, where I could see for hundreds of miles. It was my Bugsy Siegel moment when he saw Vegas, where he would build a paradise for adults. For me, it was at this moment that I knew we were going to make a paradise for wine lovers.
Courtesy of DAOU Family Estates
Paso Robles Cabernet, for us, is not just a wine; it's a journey, an experience that continues to defy expectations. From the onset, Daniel and I were driven by a desire to challenge the exclusionary nature of the wine industry, where exceptional wines often carried a hefty price tag, distant from the grasp of many enthusiasts.
Our vision was clear: to craft extraordinary wines that transcended expectations and were accessible--wines that evoked a resounding "WOW!" moment. After nine years, we knew we were on to something. People loved the wines—yes, the taste profile of the wines and also the value we provided at all price points.
Choosing Paso Robles over established regions like Napa Valley, despite its Cabernet legacy, was a distinctive move. Our search for a world-class terroir led us all over, and then we stumbled upon the Adelaida District of Paso Robles—a hidden gem. Despite its relative obscurity, we saw untapped potential and could not believe the rich terroir we have found. My brother Daniel was determined to prove that combining soils, altitude, and cooling Pacific influences would allow Cabernet to thrive. Shortly after, we founded the Paso Robles CAB Collective with other local vintners to work together to elevate the region's Bordeaux varietals.
The challenge was significant, but after nine years, the constellation of stars aligned. Our conviction in Paso Robles was validated as the scores for our wines continued to deliver at the highest levels. Cabernet Sauvignon now constitutes over 50% of all planted vines, and DAOU Cabernet Sauvignon is the most traded wine by volume on the fine wine platform Liv-Ex.
Courtesy of DAOU Family Estates
The collaboration with Waldorf Astoria for their Pedregal Collection is a testament to the bespoke craftsmanship that defines DAOU wines—artistry, terroir, and genuine connections. My brother Daniel crafted these exceptional wines exclusively for the iconic Pedregal property upon the request of Waldorf Astoria head sommelier Jhonatan Adame, who visited the winery to taste the blends in person. Upon his visit, Jhony fell in love with our property, our people, and our wines.
Waldorf Astoria, Los Cabos Pedregal features several of our wines throughout the resort, showcasing a partnership grounded in shared values. Neb Lukic, President, and Maeve Pesquera, Senior Vice President of DAOU, have further solidified this connection by hosting intimate private events for Waldorf Astoria's VIP clients at the resort as part of their Culinary Weekend Series. The Pedregal Collection celebrates craftsmanship and authentic relationships that define the DAOU experience.
Courtesy of DAOU Family Estates
Our goal is to be even more in tune with the consumer, remain relevant to a dramatic change in the market, and continue to act with integrity and passion. Not only creating the right products but putting them in the right places. Treasury Wine Estates has been very open about taking DAOU to the world and has a successful international route to market. Once the transaction closes, we will work together to decide the best path forward for DAOU.
Courtesy of DAOU Family Estates
Our 173-acre property in the Val d'Orcia region of southern Tuscany fulfills a longstanding dream. Daniel has been looking for a property in this region for seven years. With his keen eye, my brother quickly noticed the striking similarities between our new estate and DAOU Mountain in Paso Robles. It promises to be the perfect canvas for crafting exceptional wines akin to what our loyal DAOU drinkers have come to love.
Our connection with the land goes beyond the vineyards; it's about embracing the terroir, the people, and the culinary wonders Tuscany offers. We've genuinely fallen in love with the region, and under the Tuscan sun, we're reconnecting with our Mediterranean roots.
Collaborating closely with Daniel on this Tuscan project is his daughter, Lizzy Daou, who brings a wealth of experience from her time at Château Latour. Together with a dedicated local team, we are eager to shape a project that showcases the versatility of DAOU on an international stage. As a family, we've honed our technique over the last 19 years, and we're ready to sprinkle some of that magic in Tuscany. It's not just about Paso anymore; it's about showcasing that DAOU excellence knows no bounds. We aim to introduce the gifts of Val d’Orcia and Tuscany to our members, the trade, and the 60 countries we work with.
