ROCHESTER, N.Y., April 09, 2025 (GLOBE NEWSWIRE) – Constellation Brands, Inc. (NYSE: STZ), a leading global producer of beverage alcohol, announced today that it has entered into an agreement with The Wine Group to divest a significant portion of its mainstream wine brands, including associated vineyards and facilities. The deal, which is subject to regulatory approval and other closing conditions, is expected to close at the end of Constellation’s first quarter of fiscal year 2026.
The transaction is part of Constellation’s ongoing strategy to refocus its portfolio on higher-end wine and craft spirits brands, which it believes are more aligned with changing consumer preferences. The company will retain a selection of premium wine brands, including Robert Mondavi Winery, Schrader, The Prisoner Wine Company, and Kim Crawford, among others. These brands are positioned at a price point of $15 and above and are sourced from some of the most renowned wine regions around the world, such as Napa Valley, New Zealand, and Tuscany.
“We are strategically reshaping our business to concentrate on premium wine and craft spirits that will drive long-term growth and strengthen our competitive position,” said Bill Newlands, President and CEO of Constellation Brands. “This move reflects our commitment to capitalizing on higher-growth segments and complements our premium beer portfolio, allowing us to expand our presence in more consumer occasions across beer, wine, and spirits.”
The brands being sold to The Wine Group include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine, along with the related inventories, wineries, and facilities. The divestiture will streamline Constellation’s portfolio as the company moves forward with a more focused approach to its wine and spirits business.
In addition to the transaction, Constellation is undertaking a comprehensive review of its organizational structure to better align resources and investments with its new business direction. The company expects this restructuring to result in annualized cost savings exceeding $200 million by fiscal year 2028, with the majority of the work completed by the end of fiscal year 2026.
The transaction details and additional financial information will be included in Constellation Brands’ fiscal year and fourth-quarter 2025 earnings report, which will be released after the market close on Wednesday, April 9, 2025.
About Constellation Brands Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits, with operations across the U.S., Mexico, New Zealand, and Italy. Known for its portfolio of iconic brands, including Corona, Modelo, and Kim Crawford, the company is committed to building brands that enhance human connections and deliver growth. Constellation Brands also places a strong emphasis on sustainability and corporate responsibility, with a focus on environmental stewardship, community investment, and promoting responsible alcohol consumption.
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