Diageo Zinfandel Line Ripens

Diageo Chateau & Estate Wines (DC&E), a unit of Diageo, will acquire Rosenblum Cellars for $105 million. The acquisition of this leading producer of Zinfandel and Rhone varietals in the United States represents an important strategic fit for DC&E. According to IRI data, the premium Zinfandel category continues to show consistent growth and, over the past six months, has been the fastest growing major varietal in both volume and value. Until now, DC&E did not have a brand primarily focused on Zinfandel. The addition of Rosenblum Cellars will immediately give it one of the most recognizable names in a booming category. The proposed transaction, which is subject to regulatory approval in the United States, is expected to complete in the first quarter of calendar year 2008. "For 30 years, Rosenblum Cellars has created a reputation for producing top quality premium wines, which is a commitment we share," says Ray Chadwick, president, DC&E. "Rosenblum Cellars is a highly regarded, critically acclaimed brand in the dynamic premium Zinfandel segment. We look forward to working with Kent, and will provide the resources necessary to take this brand to even new and greater heights."