Diageo buying another California winemaker

Diageo, the world's biggest alcoholic drinks maker, is buying Rosenblum Cellars of California for $105 million.

Rosenblum, located in Alameda, CA, was founded in 1978. Its primary production consists of zinfandel and Rhone wines using grapes from vineyards around California. Its price range is in the $12 - $100 range.

It will become part of Diageo's Chateau & Estate Wines division, part of its North American business, joining such current holdsings as Edna Valley, Provenance, Beaulieu and Sterling.

"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 U.S," Ivan Menezes, Diageo's North America president, said in a statement.

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