Constellation Brands sells its wine brands to The Wine Group
Constellation Brands divested the majority of its popular and consumer wines and spirits portfolio in 2021, underscoring its strategy of focusing primarily on fine wines and premium craft spirits. (E. & J. Gallo Winery won wines mostly retail priced at $11 and under for $810 million in February 2021).
Now, the additional divestiture to California-based The Wine Group (whose value has not been disclosed) leaves Constellation Brands with “a more focused set of leading, powerful brands aligned with consumer preferences”, spanning consumer wines, premium, fine wines and craft spirits. segments.
Focus on The Prisoner, Kim Crawford and more
Constellation Brands’ wine portfolio is now centered on Meiomi, Kim Crawford, The Prisoner Wine Company, Robert Mondavi family of brands, High West Whiskey, Casa Noble Tequila, Schrader Cellars, Double Diamond, To Kalon Vineyard Company, SIMI, My Favorite Neighbor portfolio of brands, Lingua Franca, Nelson’s Green Brier and others.
“A key driver of our success has been our consistent focus on consumer preferences, including long-term consumer-led premiumization trends, and our agility in our approach to staying ahead of the changing market dynamics, said Robert Hanson, Executive Vice President and President, Wines and Spirits Division.
“Over the past three years, we have transformed into a premium wine and spirits division with intentional and strategic consumer actions and are evolving our business to become a leading global portfolio of premium/fine wines and craft spirits.
“This transaction [with The Wine Company] will allow us to focus and reorient our portfolio towards the high end, positioning us to continue to deliver industry-leading growth and shareholder value with the right portfolio for our ambitions.
“In return, The Wine Group is acquiring great brands that complement its current strategy of continuing to build a premium wine portfolio.”
Constellation Brands’ wine strategy has led it to invest in The Rosé Festival(a “disruptive brand geared towards multicultural consumers”) and Californian Sapere Aude Sparkling Wine in 2021.