The Robert Mondavi case’s depiction
of Robert’s tumultuous relationship with his family read like a good Hollywood drama
and got me thinking about Miraval and speculations of similar dramatics
surrounding the brand. For those of you not as obsessed with celebrities as I, Chateau
Miraval Wine is co-owned by mega super-stars Brad Pitt and Angelina Jolie who separated
at the end of 2016. Despite their drama-filled separation (see: restraining
orders, rumors of reconciliation, allegations of child abuse) the exes released
a new bottling of Miraval just 2 weeks ago, a strong signal to the market that
despite recent news reports, they are continuing to co-own and grow their
extremely successful pink rose brand. In fact, the popular rose label will
still say “bottled by Jolie-Pitt.” So, while their relationship seems to be falling
apart and they no longer identify socially as “the Jolie-Pitts” their
commitment to their wine brand remains strong.
So why liquidate all of their other
shared assets but not the chateau? Based on our most recent class discussion,
it seems that Jolie and Pitt see the long-term value of this hard asset.
Clearly they believe the land and the brand will remain valuable (and perhaps
become more valuable) over time as it is passed to future generations. Even
though Carol Reber said she was looking into takeovers in jest, I would not be
shocked if wine giants like Constellation and Gallo are exploiting the status
of this relationship by making real competitive offers right now. While recent
moves seem to suggest a sale is not around the corner, if ever Pitt and Jolie
were to sell it seems now would be a good time. But perhaps they will instead
keep it in the family and we will see it grow into a family legacy brand recognizable
on the level of Mondavi and Krug.
I wonder how much of their decision to maintain Mirival is about the "long-term value of [the] hard asset" i.e., the land itself vs. the trophy status of owning a French chateau. I guess I'm not really disputing the overall point, but rather, emphasizing that what's at play here is really the very unique and particular qualities of the hard asset. I think if this winery was in Napa Valley the joint ownership might be less of an issue. While vineyard-quality land in Napa is expensive, wine producing French chateau are even harder to come by. I think it's the uniqueness of this trophy asset that makes the Jolie-Pitts reluctant to part ways with their joint ownership of the property.
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