Constellation Brands has announced the divestment of several mainstream wine brands to The Wine Group, though financial details of the transaction remain undisclosed. The move, framed by Constellation as an offload of its more mass-market wine labels, will see popular names like Cook’s, J Rogét, Meiomi, Robert Mondavi Private Selection, SIMI, and Woodbridge change ownership. The sale also includes three production facilities and around 6,600 acres of vineyards in California.
The Wine Group, which described the acquisition as a strategic expansion, is acquiring “several popular, premium, and ultra-premium brands” in a deal that aligns with its focus on high-quality consumer products. “We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” said John Sutton, CEO of The Wine Group. “This addition will enhance our diversified portfolio, offering consumers exceptional taste, quality, and value.”
Following the sale, Constellation’s wine business will shift to focus on a higher-end segment, with a per-bottle price point of $15 and above. Constellation’s CEO, Bill Newlands, described the divestment as a key step in “reconfiguring” the company’s operations, allowing it to concentrate on a portfolio of higher-end wine and craft spirits brands that align with changing consumer preferences.
Additionally, Constellation revealed that it has initiated a review of its organizational structure, with the goal of achieving annual savings of around $200 million. This review is expected to conclude by the end of February next year.
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