Diageo calls time on California vineyard

 
 
CRAIG AURNESS/CORBIS

Diageo is expected to hoist a for-sale sign over the Chalone Vineyard in the Napa Valley after it was excluded last week from a $552 million deal with Treasury Wine Estates, of Australia.

The sale of its US-based Chateau & Estate Wines, including the Sterling and Beaulieu vineyards and Blossom Hill, did not include Chalone because Treasury already has enough chardonnay brands.

The spirits group, which has long been ambivalent about wine, acquired the Chalone Wine Group a decade ago for $260 million when it owned a string of vineyards and wineries across California and Washington state plus a stake in a Bordeaux estate.

The acquisition of Chalone was masterminded by Ivan Menezes, the Diageo chief executive, while he was head of Diageo North America.