Acquisition

Diageo PLC
28 January 2008



28 January 2008


Diageo to acquire highly rated Rosenblum Cellars


Diageo, the world's leading premium drinks business, announced today that it has
entered into an agreement to acquire Rosenblum Cellars. The acquisition
represents a unique opportunity to own a highly rated Zinfandel brand and
therefore it further enhances Diageo Chateau and Estate Wines' brand range in
the fastest growing segment of US wines, the premium segment.  The consideration
$105 million and it is anticipated that the acquisition will be economic profit
positive during the fourth full year of ownership.


Rosenblum Cellars, which is based in Alameda California was founded in 1978 by
Kent and Kathy Rosenblum and is one of the leading producers of Zinfandel and
Rhone varietals in the United States. As part of the acquisition, Kent Rosenblum
will continue to make award-winning wines and he will play a key advisory role
in the strategic direction of the brand.


The transaction, which is subject to regulatory approval in the United States,
is expected to complete in the first quarter of calendar year 2008.


Commenting, Ivan Menezes, President, Diageo North America said:


'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 US.  We look forward to working with the
Rosenblums in growing this brand as we continue to focus on the quality for
which these wines are known and in addition allow the wines to benefit from
Diageo's superior distribution network in the US.'



Notes to editor:



About Diageo Chateau & Estate Wines

Diageo Chateau & Estate Wines (DC&E), is part of  Diageo's North American
business. It produces and markets premium wines from around the globe including
Napa Valley, Sonoma, the California Central Coast, Washington, France, New
Zealand and Australia.  Brands include: Beaulieu Vineyard, Sterling Vineyards,
Sterling Vintner's Collection, Chalone Vineyard, Acacia Vineyard, Edna Valley
Vineyard and Provenance Vineyards as well as the French wines of Barton &
Guestier. DC&E is also a leading importer of classified Bordeaux and Burgundy
estate-bottled wines and F.E. Trimbach.



About Rosenblum Cellars

Founded in 1978 by veterinarian Dr. Kent Rosenblum and wife Kathy, Rosenblum
Cellars produces an internationally renowned portfolio of more than 40 wines
from top vineyards located throughout California's finest appellations. Known
for world-class zinfandels and Rhone varietals, Rosenblum Cellars crafts a full
range of award-winning wines in several tiers including its Reserves, Vineyard
Designates, Appellation Series and Cuvee Series. Rosenblum Cellars wines are
currently distributed in all 50 states and 16 countries.



About Diageo

Diageo's broader business includes an outstanding collection of beverage alcohol
brands across spirits, wine and beer including Johnnie Walker, Guinness,
Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan and Crown Royal.
Diageo is a global company, listed on both the New York Stock Exchange (DEO) and
the London Stock Exchange (DGE). For more information about Diageo, its people,
brands and performance, visit us at http://www.diageo.com.



Celebrating life, every day, everywhere, responsibly.



For further information:



Investor relations
Catherine James
[phone]
[e-mail]


Media relations
Stephen Doherty
[phone]
[e-mail]



Jennifer Crowl
[phone]
[e-mail]




                      This information is provided by RNS
            The company news service from the London Stock Exchange