Diageo, the world’s leading premium drinks business, announced today that it has entered into an agreement to acquire Rosenblum Cellars. The acquisition represents a unique opportunity to own a highly rated Zinfandel brand and therefore it further enhances Diageo Chateau and Estate Wines’ brand range in the fastest growing segment of US wines, the premium segment. The consideration $105 million and it is anticipated that the acquisition will be economic profit positive during the fourth full year of ownership.
Rosenblum Cellars, which is based in Alameda California was founded in 1978 by Kent and Kathy Rosenblum and is one of the leading producers of Zinfandel and Rhone varietals in the United States. As part of the acquisition, Kent Rosenblum will continue to make award-winning wines and he will play a key advisory role in the strategic direction of the brand.
The transaction, which is subject to regulatory approval, is expected to complete at the end of February 2008.
Commenting, Ivan Menezes, President, Diageo North America said:
‘The acquisition of Rosenblum Cellars represents an important strategic fit for us, as it enhances Diageo’s presence in the premium Zinfandel segment, one of the fastest growing varietals in the US. We look forward to working with the Rosenblums in growing this brand as we continue to focus on the quality for which these wines are known and in addition allow the wines to benefit from Diageo’s superior distribution network in the US.’
About Diageo Chateau & Estate Wines
Diageo Chateau & Estate Wines (DC&E) is part of Diageo’s North American business. It produces and markets premium wines from around the globe including Napa Valley, Sonoma, the California Central Coast, Washington, France, New Zealand and Australia. Brands include: Beaulieu Vineyard, Sterling Vineyards, Sterling Vintner’s Collection, Chalone Vineyard, Acacia Vineyard, Edna Valley Vineyard and Provenance Vineyards as well as the French wines of Barton & Guestier. DC&E is also a leading importer of classified Bordeaux and Burgundy estate-bottled wines and F.E. Trimbach.
About Rosenblum Cellars
Founded in 1978 by veterinarian Dr. Kent Rosenblum and wife Kathy, Rosenblum Cellars produces an internationally renowned portfolio of more than 40 wines from top vineyards located throughout California’s finest appellations. Known for world-class zinfandels and Rhône varietals, Rosenblum Cellars crafts a full range of award-winning wines in several tiers including its Reserves, Vineyard Designates, Appellation Series and Cuvée Series. Rosenblum Cellars wines are currently distributed in all 50 states and 16 countries.
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