California-based wine giant The Wine Group is set to significantly expand its portfolio with the acquisition of several key assets from Constellation Brands, including well-known wine labels and nearly 2,670 hectares of vineyards. The deal, expected to close in early 2026 pending regulatory approval, will see The Wine Group take ownership of labels such as Meiomi, Robert Mondavi Private Selection, SIMI, Woodbridge, and J. Rogét.
This move will bolster The Wine Group’s presence in both premium and ultra-premium wine categories, while also enhancing its retail footprint and access to on-trade volume. CEO John Sutton said the acquisition aligns with the company’s mission to provide a diversified selection of high-quality, consumer-focused wine brands.
“We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” said Sutton. “This acquisition strengthens our legacy of more than 40 years in delivering exceptional wines with outstanding operational execution.”
Currently, Robert Mondavi Private Selection wines retail between $7.99 and $11.99 at Total Wine, while Meiomi commands a higher price, ranging from $15.47 to $28.99.
The transaction also includes the acquisition of three production facilities located in Lodi, Monterey County, and Healdsburg, California. These sites will complement The Wine Group’s existing operations and support its continued growth across the U.S. market.
Sutton, who became CEO of The Wine Group in 2022, previously served in the Clinton administration as special assistant to the Deputy Chief of Staff and the Counselor to the President.
For Constellation Brands, the sale represents a strategic pivot. The company is shedding several mainstream wine brands following a 7% decline in sales during fiscal 2025. President and CEO Bill Newlands stated the divestment is part of a multi-year plan to concentrate on higher-end offerings across wine and craft spirits—segments that are more aligned with shifting consumer preferences.
“Our strategy is to refine our portfolio to focus on premium brands that better reflect where the growth is in today’s market,” Newlands said. “This move supports our efforts to strengthen our position in the premium wine and beer sectors.”
Despite the planned sale, Constellation will retain high-end brands such as Kim Crawford from New Zealand, Ruffino Estates from Tuscany, My Favorite Neighbor from Paso Robles, Sea Smoke from Santa Barbara County, and Lingua Franca from Oregon’s Willamette Valley.
Interestingly, both Robert Mondavi and Meiomi showed improved performance and increased market share as recently as January 2025—highlighting the continued value of these assets as they transition to new ownership.
Constellation expects to generate approximately $900 million in proceeds from the deal, which remains subject to regulatory clearance and is scheduled for completion by the end of Q1 2026.
You Might Be Interested In:
