Jaboulet on Track for Sale to Bordeaux Château Owner

Paul Jaboulet Aîné, one of the wine world's most storied houses, is putting the finishing touches on its sale to Jean-Jacques Frey, a part-owner of Château La Lagune in Bordeaux's Haut-Médoc appellation. The sale is for the entire company, including all vineyards and current inventory. No purchase price has yet been disclosed.

Fiscal and inventory audits have been completed without any problems, according to winery president Michel Jaboulet. With some additional paperwork still to be completed, the sale of the venerable Rhône producer should be official as of Jan. 1, 2006.

Paul Jaboulet Aîné has been owned by the Jaboulet family since its founding in 1834, but issues with French inheritance taxes and some family members' lack of interest in maintaining the business prompted the sale. "The problems of succession in a family company are difficult," Michel Jaboulet said.

One of the most recognizable names in wine, Paul Jaboulet Aîné's Hermitage La Chapelle bottling has historically been a benchmark for the Rhône Valley. The company both acts as a négociant and owns more than 245 acres of vineyards in the Northern Rhône, including 60 prized acres in the Hermitage appellation and 5 percent of the entire Crozes-Hermitage appellation. The winery currently produces 275,000 cases of wine annually, sending an average of 70,000 cases a year to the U.S. market.