"She was all smiles and giving everyone hugs," an onlooker tells PEOPLE

By Tiare Dunlap
Updated April 02, 2016 08:40 PM
Credit: Joe Scarnici/Wireimage

Drew Barrymore showed off her sunny disposition while serving Barrymore rosé at the Pebble Beach Food & Wine Festival on Saturday, just one day after news broke that she and husband Will Kopelman are divorcing.

“At the wine tasting table, Drew got behind the table and started pouring wine,” an onlooker tells PEOPLE. “She was all smiles and giving everyone hugs.”

As previously reported, the actress, producer and entrepreneur attended the northern California event to debut the newest wine from her label Barrymore Wines.

Barrymore was sporting a casual look in sunglasses and a ponytail and appeared to be in a good mood, gushing about the wine and posing for photos with fans, the onlooker said.

“She was warm and engaged and posed for lots of selfies with fans,” the source says. “She looked very happy.”

On Friday night, Barrymore attended a release party for the rosé at the food festival, just hours after news broke of her split with Kopelman, her husband of almost four years. A source told PEOPLE that Barrymore and Kopelman “had marriage issues for a while,” including “tension over where to live” with Barrymore preferring Los Angeles while Kopelman preferred New York City.

On Saturday, the couple released an exclusive statement to PEOPLE that said their children – Olive, 3, and Frankie, 23 months – would remain their “first priority.”

“Sadly our family is separating legally, although we do not feel this takes away from us being a family,” the pair said. “Divorce might make one feel like a failure, but eventually you start to find grace in the idea that life goes on.

“Our children are our universe, and we look forward to living the rest of our lives with them as the first priority.”

With reporting by Troy Hooper