28th Jan 2008 07:00
Diageo PLC28 January 2008 28 January 2008 Diageo to acquire highly rated Rosenblum Cellars Diageo, the world's leading premium drinks business, announced today that it hasentered into an agreement to acquire Rosenblum Cellars. The acquisitionrepresents a unique opportunity to own a highly rated Zinfandel brand andtherefore it further enhances Diageo Chateau and Estate Wines' brand range inthe fastest growing segment of US wines, the premium segment. The consideration$105 million and it is anticipated that the acquisition will be economic profitpositive during the fourth full year of ownership. Rosenblum Cellars, which is based in Alameda California was founded in 1978 byKent and Kathy Rosenblum and is one of the leading producers of Zinfandel andRhone varietals in the United States. As part of the acquisition, Kent Rosenblumwill continue to make award-winning wines and he will play a key advisory rolein the strategic direction of the brand. The transaction, which is subject to regulatory approval in the United States,is expected to complete in the first quarter of calendar year 2008. Commenting, Ivan Menezes, President, Diageo North America said: 'The acquisition of Rosenblum Cellars represents an important strategic fit forus, as it enhances Diageo's presence in the premium Zinfandel segment, one ofthe fastest growing varietals in the US. We look forward to working with theRosenblums in growing this brand as we continue to focus on the quality forwhich these wines are known and in addition allow the wines to benefit fromDiageo's superior distribution network in the US.' Notes to editor: About Diageo Chateau & Estate Wines Diageo Chateau & Estate Wines (DC&E), is part of Diageo's North Americanbusiness. It produces and markets premium wines from around the globe includingNapa Valley, Sonoma, the California Central Coast, Washington, France, NewZealand and Australia. Brands include: Beaulieu Vineyard, Sterling Vineyards,Sterling Vintner's Collection, Chalone Vineyard, Acacia Vineyard, Edna ValleyVineyard and Provenance Vineyards as well as the French wines of Barton &Guestier. DC&E is also a leading importer of classified Bordeaux and Burgundyestate-bottled wines and F.E. Trimbach. About Rosenblum Cellars Founded in 1978 by veterinarian Dr. Kent Rosenblum and wife Kathy, RosenblumCellars produces an internationally renowned portfolio of more than 40 winesfrom top vineyards located throughout California's finest appellations. Knownfor world-class zinfandels and Rhone varietals, Rosenblum Cellars crafts a fullrange of award-winning wines in several tiers including its Reserves, VineyardDesignates, Appellation Series and Cuvee Series. Rosenblum Cellars wines arecurrently distributed in all 50 states and 16 countries. About Diageo Diageo's broader business includes an outstanding collection of beverage alcoholbrands across spirits, wine and beer including Johnnie Walker, Guinness,Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan and Crown Royal.Diageo is a global company, listed on both the New York Stock Exchange (DEO) andthe London Stock Exchange (DGE). For more information about Diageo, its people,brands and performance, visit us at http://www.diageo.com. Celebrating life, every day, everywhere, responsibly. For further information: Investor relationsCatherine James+44 (0)20 7927 [email protected] Media relationsStephen Doherty+44 (0)20 7927 [email protected] Jennifer Crowl+44 (0)20 8978 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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