Another example of an old family-owned business is Laurent-Perrier (XPAR:LPE), a Champagne maison founded in 1812 and controlled by the De Nonancourt family, which has been running the company for three generations and currently owns 61% of it.8 With its supply structurally limited by French law that defines the geographic area in which it can be produced, Champagne is a scarce asset, and the vast majority of both the wine and the grapes needed to produce it are in the hands of large maisons like Laurent-Perrier. While its Champagne brands—most notably Laurent-Perrier but also Salon, De Castellane and Delamotte—are very valuable, Laurent-Perrier also controls certain impossible-to-replicate assets in the form of its vineyards and other prime real estate and its large inventory of aging bottles.
From First Eagle Investment (Trades, Portfolio)'s September 2019 commentary, International Equity: Selectivity in a Vast and Varied Market.
