SAN FRANCISCO, CA, February 29, 2008 - Demeter Group, a boutique investment bank specializing in consumer companies, has advised Rosenblum Cellars on its sale to Diageo Chateau & Estate Wines (DC&E), part of Diageo, the world’s leading premium drinks business. DC&E announced its acquisition of Rosenblum Cellars for $105 million.

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 is a strategic fit for DC&E, as the company currently does not have a brand primarily focused on Zinfandel. The addition of Rosenblum Cellars will immediately give DC&E one of the most recognizable names in a booming category.

"Demeter Group was the clear choice to serve as our advisor during this transaction due to the firm’s deep expertise within the wine industry as well as the firm’s complementary food and beverage focus," said Kent Rosenblum, founder of Rosenblum Cellars. "Demeter Group’s senior team of wine industry professionals leveraged their unparalleled relationships within the industry as well private equity community to help guide us through the sale process. In particular, the firm helped us to develop credible projections to detail our brand’s full potential and ensured our speed to market."

"This acquisition further solidifies Demeter Group’s position as the preeminent investment bank for the wine industry," said Jeff Menashe, CEO, Demeter Group. "We were thrilled with the opportunity to partner with Rosenblum to identify prospective buyers that were not only a strategic fit but also understood the uniqueness and potential of the Rosenblum brand. This is a terrific partnership between two companies that share the same commitment and passion for making the highest quality wines."

According to IRI data, the premium Zinfandel category continues to show consistent growth, and over the past six months has been the fastest growing major varietal in both volume and value.

The last decade has been an exceptional one for Rosenblum Cellars. The winery has continued to gain the respect and appreciation of both the public and its peers, and has been honored with numerous gold medals and 90-plus scores. Still loved for its world-class zinfandels, Rosenblum has also established a reputation for crafting acclaimed Rhône varietals in its own ripe and robust style. This unique approach has culminated in a diverse portfolio of award-winning wines in several categories, including its Reserves, Vineyard Designates, Appellation Series and Cuvée Series. Rosenblum Cellars is currently distributed in every state.