Californian wine producer Duckhorn Wine Co has acquired Napa Valley’s Three Palms Vineyard for an undisclosed fee.

Duckhorn said yesterday that Three Palms, which is owned by Sloan and John Upton, will be the "crown jewel" of its estate programme. Duckhorn has been buying the 83-acre vineyard's grapes since 2011.

"This is a very special day for us," said Duckhorn's founder & chairman, Dan Duckhorn. "We have championed the remarkable character and quality of Merlot from Three Palms Vineyard since our debut vintage."

This month, Diageo said it is considering the divestment of its wine business but that a sale is less likely than has been suggested in media reports.