Colgin is an LVMH Brand?

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Colgin is an LVMH Brand? - 11/21/2017 11:11:21 AM

mc2 wines

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Got this e-mail today. Guess more and more ppl selling out.

quote:

Dear Chelsea,
As Thanksgiving approaches, I wanted to offer our sincere thanks and appreciation for your enthusiastic support. For the last quarter of a century, we have dedicated ourselves at Colgin Cellars to crafting wines of perfume, freshness, and minerality from hillside vineyards within the Napa Valley.
I am writing you today with some exciting news for the future. We have agreed to enter into a strategic partnership with Bernard Arnault and LVMH. Under the terms of the agreement, my husband Joe and I have sold a sixty percent stake to the LVMH Group while continuing to hold forty percent equity in the business and maintaining our leadership functions. Our talented winery team will continue to be lead by Joe and myself along with COO, Paul Roberts, MS and Winemaker, Allison Tauziet. We are happy that our entire staff will remain in place and continue to offer our customers the unique and high-end experiences we’ve always created.
I realized that I could not find a better partner for Colgin Cellars to preserve our founding spirit and our exquisitely handcrafted red wines, into the future. Be assured that the level of quality and attention you have come to expect from us will continue for many decades to come.
In announcing the agreement, Bernard Arnault, Chairman and CEO of LVMH stated “We share with Colgin Cellars the same desire to offer the very best quality products. I am therefore delighted to welcome Colgin’s unique heritage into LVMH, reaffirming our strategy of selective acquisition of the best existing terroirs, and enriching our collection of iconic wines such as Château Cheval Blanc, Château d’Yquem and Domaine du Clos des Lambrays.”
In honor of our 25th Anniversary, we created a short film that showcases our journey. Please follow the link: Colgin "An Uncommon Journey"
Please let us know if you have any questions which we may answer. Our best wishes for a safe and bountiful holiday season!
With Gratitude,
Ann Colgin

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RE: Colgin is an LVMH Brand? - 11/21/2017 11:50:29 AM

WineGuyCO

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Has there EVER been a situation were selling out to a larger company has been a good thing? I mean as far as the wine quality goes? I guess if the quality just stays the same then it's good for consumers.

I remember Mondavi getting bought out many moons ago and I honestly never bought any of their wines after that. Maybe they are still as good as before so maybe it's not necessarily a bad thing?

Rick

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RE: Colgin is an LVMH Brand? - 11/21/2017 12:22:47 PM

ericindc

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Its interesting how different it is between Europe and the US on this issue. In Europe, many of the top wines are owned by larger corporations. No idea why quality falls so precipitously when when american wineries get purchased.

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RE: Colgin is an LVMH Brand? - 11/21/2017 1:12:01 PM

champagneinhand

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This is a strategic move by Colgin and Arnault to share bigger holdings in Burgundy together, while protecting Colgin from colossus type entities like Constellation, based from where I live.

I don’t se e it as bad, just strategic while keeping Colgin a top Cult CA brand as LVMH does this so well.

LVMH employs the most counterfeit investigators out there, while always trying to work well with the authorities of countries that offenders reside. It’s a huge protection of their holdings. I didn’t see in the letter, how much of the purchase price was in shares of LVMH, but I would think it would be a pretty good sized chunk of the final sales figure.

It’s not the end of the world. It’s strategic planning for the future. Arnault remains, in Belgium trying to avoid the heavy taxation of France. This should be another step in building his case that will probably go before an international tribunal rather than just a French court.

The people who have large assets are always fighting to keep as much of the pie as possible. If you are buying Colgin, I wouldn’t in any way, think that the quality of your product would suffer. With bills trying to reduce overall USA corporate taxation, this makes sense for all parties.

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RE: Colgin is an LVMH Brand? - 11/21/2017 1:30:28 PM

KPB

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I personally dislike the Colgin style, although my experience is limited to a few bottles, and a glass at a few tastings. But all were letdowns: high ranked wines according to the main reviewers and yet way out of balance, hot, heavy, oaky. Maybe this actually is a case where LVMH changes might not reduce quality?

< Message edited by KPB -- 11/21/2017 1:31:29 PM >

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RE: Colgin is an LVMH Brand? - 11/21/2017 4:37:11 PM

midpalate

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quote:

ORIGINAL: KPB
[. . .] all were letdowns: high ranked wines according to the main reviewers and yet way out of balance, hot, heavy, oaky. Maybe this actually is a case where LVMH changes might not reduce quality?

Sounds like quality has nowhere to go but up. (Also sounds like I'm making the right choices by sending almost all of my wine $s to Europe).

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RE: Colgin is an LVMH Brand? - 11/21/2017 5:51:42 PM

mc2 wines

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It's a favorite of mine. If we had won the $1B lottery from last year I would have tried to buy them out and then retired doing wine tastings for whatever number of ppl the permit allowed overlooking Lake Hennessy.

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RE: Colgin is an LVMH Brand? - 11/21/2017 7:26:57 PM

recotte

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quote:

ORIGINAL: mc2 wines

It's a favorite of mine. If we had won the $1B lottery from last year I would have tried to buy them out and then retired doing wine tastings for whatever number of ppl the permit allowed overlooking Lake Hennessy.

I believe this is the best plan for lottery winnings I've ever heard.

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RE: Colgin is an LVMH Brand? - 11/21/2017 11:20:38 PM

champagneinhand

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quote:

ORIGINAL: recotte

quote:

ORIGINAL: mc2 wines

It's a favorite of mine. If we had won the $1B lottery from last year I would have tried to buy them out and then retired doing wine tastings for whatever number of ppl the permit allowed overlooking Lake Hennessy.

I believe this is the best plan for lottery winnings I've ever heard.

I think I would drink sidecars and enjoy not worrying about winemaking.

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As I age my finger tips seem to be bigger, my iOS keyboard seems to be less kind, and my need for wearing reading glasses has never been greater. I hope you are forgiving and can read between my lines.

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RE: Colgin is an LVMH Brand? - 11/24/2017 1:31:23 PM

mc2 wines

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quote:

ORIGINAL: champagneinhand

quote:

ORIGINAL: recotte

quote:

ORIGINAL: mc2 wines

It's a favorite of mine. If we had won the $1B lottery from last year I would have tried to buy them out and then retired doing wine tastings for whatever number of ppl the permit allowed overlooking Lake Hennessy.

I believe this is the best plan for lottery winnings I've ever heard.

I think I would drink sidecars and enjoy not worrying about winemaking.

For sure not worrying about winemaking. Just the tasting and chatting with random guests.

Winemaker has done very well so far. Wouldn't change what works (also do not have the chemistry/gardening talent required for that).

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RE: Colgin is an LVMH Brand? - 11/25/2017 3:39:54 PM

skifree

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LVMH is about luxury brands - so would be shocked if the quality of the wine drops - in fact the reverse may be true as LVMH has the deep pockets to invest in vineyard and winery improvements.

Part of a luxury brand is a luxury price, however.

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RE: Colgin is an LVMH Brand? - 11/25/2017 4:00:14 PM

DoubleD1969

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quote:

ORIGINAL: recotte

quote:

ORIGINAL: mc2 wines

It's a favorite of mine. If we had won the $1B lottery from last year I would have tried to buy them out and then retired doing wine tastings for whatever number of ppl the permit allowed overlooking Lake Hennessy.

I believe this is the best plan for lottery winnings I've ever heard.