Wine around town

So I’m guessing that the wine industry is much like the tech start-up one…you either pray to hit it big on your own and be able to build a nice cushy campus where people ride around on Segways or you hope to get bought out by a much bigger company that appreciates your product.    In the case of Rosenblum Cellars, they did the latter, as reported yesterday by just plain dave.

While at first this seemed like a pretty small news story, it’s been covered by a number of news outlets, but the Santa Rosa Press Democrat did the most thorough story:

British beverage giant Diageo announced Monday that it has agreed to buy zinfandel specialist Rosenblum Cellars for $105 million.

…

The acquisition is aimed at strengthening Diageo’s high-end wine portfolio, which is managed in Napa.

“The company currently does not have a brand primarily focused on zinfandel,” Diageo said. “The addition of Rosenblum Cellars will immediately give it one of the most recognizable names in a booming category.”

…

Diageo is one of the world’s largest spirits companies, owning brands such as Smirnoff vodka, Guinness stout and Johnnie Walker whiskey. Its wine portfolio is a relatively small portion of its total revenue, but includes powerhouse brands such as Beaulieu Vineyard and Sterling Vineyards in Napa.

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The winery has taken on a number of investors over the years to fund its growth, and today about 250 people own shares, Rosenblum said.

The investors didn’t force a sale, he said. Rosenblum, 63, said his advisers convinced him the time was right to test the waters for a sale. It turned out that Diageo paid even more than his advisers estimated the winery would fetch, he said.

Rosenblum, who has agreed to stay on as winemaker, said Diageo promised the company would leave winemaking decisions up to him…

And it just so happens only a week before, Kent Rosenblum’s hometown newspaper did a story about his journey from local boy to award winning winemaker, and the article starts off by highlighting his super sniffer:

When he was growing up in St. Paul, Kent Rosenblum started noticing that one of his senses was particularly well developed. “I could smell things no one else could,” he said. “I’d find certain odors in people’s houses objectionable. It was always a detriment.”

There was no way that Rosenblum could have known that he had a gift, much less where it would take him: to the pinnacle of the wine world. This year, Rosenblum Cellars celebrates its 30th anniversary, and the awards and accolades keep pouring in…

With a much larger parent company behind the wheel (if the transaction is approved, of course) perhaps we’ll be seeing Rosenblum wines at more locations like Costco next to Diaego’s other offerings like Chalone and Smirnoff (in a big big big bottle).   But lest you think Costco is only for the common man (or woman) I found this November New York Times article fascinating about how high powered Washington DC host and hostesses have taken to the massive aisles at Costco to pick up their foodstuffs for DC parties. 

Congratulations to Rosenblum Cellars!