Diageo enters US market with purchase of Rosenblum Cellars

Diageo, the largest multinational beer, wine and spirits company in the world, has announced it has purchased Rosenblum Cellars, the Californian wine maker, in a deal worth £53million.

Following the purchase, Diageo said its target is to become the leading premium wine company in the US. It is the group’s first wine acquisition since it purchased the Chalone Wine Group in 2005 for $260 million.

Ivan Menezes, president of Diageo North America, said the deal will enhance Diageo’s superior distribution network in the US.

By 2010, it is expected that the US will be the largest market for wine globally, overtaking France and Italy.

Diageo makes Gordon’s, Smirnoff and Johnnie Walker and has been gradually moving into wine and its brands include Blossom Hill, Piat D’Or, Baron Philippe and Sterling Vineyards.

Rosenblum was founded by Kent Rosenblum and his wife Kathy in 1978, Kent started his own vineyard specialising in zinfandel and Rhône varieties of wines after moving to California in 1970. Currently, Rosenblum has several different ranges of wines, selling for between $12 and $50. Its wines are distributed throughout the US and in 16 other countries.

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