• January 29, 2008

Diageo Chateau & Estate Wines (DC&E), part of Diageo, has entered into an agreement to acquire Rosenblum Cellars for $105 million. 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.

Rosenblum Cellars, founded in 1978 by Kent and Kathy Rosenblum and based in Alameda, Calif., is one of the leading producers of Zinfandel and Rhone varietals in the United States.

The acquisition of Rosenblum Cellars represents an important strategic fit for DC&E. The company currently does 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.

--Nina M. Lentini