LVMH's Latest Buy: Clos des Lambrays Burgundy

Screen Shot 2014-04-15 at 4.46.08 PMLVMH acquired another asset this week: the Clos des Lambrays Burgundy vineyard. Louis Vuitton's parent company's purchase comes as anything but a big surprise for several reasons: 1 - LVMH has been buying into various wine companies for a few decades now, including Chateau Cheval Blanc and Chateau d’Yquem, as part of its Estates & Wines division, which was formed after the company merged with champagne giant Moët Hennessy in 1987. As a result of the merger, LVMH acquired a dozen major brands, including Moët & Chandon, Veuve Clicquot, Dom Pérignon and Krug, as well as Hennessy cognac and Chateau d’Yquem; 2 - Investors have been snatching up vineyards in the Burgundy region in France quite a bit as of late; and 3 - Vineyards are kind of a thing in fashion. Salvatore Ferragamo, Chanel and Roberto Cavalli all have  financial stakes in vineyards producing wine for retail. And last year, Artemis SA, the Pinault family holding company that controls luxury conglomerate Kering bought into the Araujo Estate Wines in Napa Valley, adding it to the roster of vineyards it owns, including Château Latour in Bordeaux, Domaine d'Eugénie in Burgundy and Château Grillet in the Rhône Valley.