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Joe Tsai, the co-founder and chairman of the online retail giant Alibaba, has taken a notable plunge into the world of fine wines by investing in Burgundy’s legendary Côte d’Or vineyards. According to Bloomberg, Tsai has teamed up with other investors to acquire vineyard parcels in the prestigious Gevrey-Chambertin area, further cementing his status among wealthy business magnates venturing into the illustrious French wine industry.
Tsai’s latest venture places him in the heart of Burgundy’s Côte de Nuits, an area renowned for producing some of the world’s most celebrated wines. The consortium, which includes Oliver Weisberg, CEO of Tsai’s Blue Pool Capital investment firm, has reportedly secured parcels in Charmes-Chambertin, Mazoyères-Chambertin, and Ruchottes-Chambertin. These vineyards are highly coveted for their Pinot Noir grapes, contributing to Burgundy’s reputation for exceptional quality and exclusivity.
This acquisition comes at a time when vineyard prices in the Côte d’Or have seen a significant rise. The French land agency Safer reported an 11% increase in average vineyard prices in 2023, reaching €983,800 per hectare. This surge underscores the high demand and limited availability of prime vineyard land in the region. Grand Cru vineyards, in particular, can fetch several million euros per hectare, depending on their size and location.
By investing in Burgundy, Tsai joins a distinguished group of international billionaires and influential families who have staked their claim in France’s wine industry. Notable figures include Bernard Arnault of LVMH, who acquired Clos des Lambrays a decade ago, and Alibaba’s own Jack Ma, who ventured into Bordeaux by purchasing Château de Sours and other estates. These acquisitions reflect a broader trend among the ultra-wealthy, who view vineyards not only as lucrative investments but also as symbols of prestige and passion.
Tsai’s foray into Burgundy is not just about investment. Known for his passion for wine, Tsai produced the 2019 documentary “L’Ame du Vin” (The Soul of Wine), which explores the essence of Burgundy’s vineyards. This move aligns with his broader vision of integrating his personal interests with strategic business ventures.
Born in Taiwan and holding Canadian citizenship, Tsai’s business empire extends beyond Alibaba. He owns the Brooklyn Nets and New York Liberty basketball teams, showcasing his diverse portfolio and global influence. According to Forbes, Tsai’s net worth stands at approximately US$8.9 billion, a testament to his successful ventures and strategic investments.
While details of the financial transaction remain undisclosed, the strategic acquisition of these vineyard parcels highlights Tsai’s commitment to expanding his footprint in the luxury wine market. As Tsai continues to diversify his investments, his entry into Burgundy signifies a deepening connection with one of the world’s most revered wine regions, promising exciting prospects for both his business portfolio and the global wine community.
