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Diageo Putting Chalone Up For Sale
Oct 21, 2015
(SN) - Diageo is putting Chalone Vineyards up for sale, the company told SND earlier today. The move comes just a few days after the drinks giant agreed to sell most of its wine interests to Treasury Wine Estates in a $600 million deal. Diageo said it was planning to sell both the Chalone brand and the winery, which has operated in Monterey County for nearly a century.
Diageo acquired Chalone in late 2004, when it was building its wine business in California and Washington via a series of purchases. Under Diageo’s stewardship, the brand’s sales jumped from 30,000 cases to more than 200,000 cases in just a few years’ time. That growth was driven by Chalone’s Chardonnay offerings, which currently account for nearly half its volume.
However, Chalone lost steam over the past few years, and in 2014 declined by nearly 15% to 116,000 cases. At the same time, Diageo has gradually moved away from the wine business, and, after its recent deal with Treasury Wine Estates, now has a very limited presence in wine.
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