As Diageo continues to divest its wine assets, the group has completed its exit from the U.S. wine category with the sale of its Chalone Estate Vineyard to Foley Family Wines for an undisclosed amount, according to Wine Spectator. Through the deal, Foley Family Wines has acquired the Gavilan brands as well as approximately 1,000 acres including 240 acres planted in Chardonnay and Pinot Noir, and a planting of a Chenin Blanc that dates to 1919, reports The Drinks Business.

 

Diageo originally purchased the winery in 2004 for $260 million when the group’s current CEO, Ivan Menezes, was head of North America, and under whose tenure the winery’s production increased from 30,000 cases to 200,000 cases within the first few years, before falling back to 166,000 cases in 2014.

 

Diageo has been divesting its wine interests beginning with the sale of the bulk of its wine division to Treasury Wine Estates in October 2015 for US$552 million, after a string of uninspiring financial reports caused investors to pressure the group to restructure.

 

Founded in 1996, Foley Family Wines’ portfolio includes wineries in California, Washington, and New Zealand.

 

“We have incredible wineries and vineyards stretching from Lincourt in Solvang, California up to Three Rivers in Wall Walla, Washington,” Bill Foley ,  told Off License News. “Chalone Estate Vineyard, with its great wines and incredible history, gives our consumers and guests world class wine options along the entire coast.”