Constellation Brands has finalised the offload of its “mainstream” wine brands to California-based The Wine Group.
The divestment of brands, including Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J Rogét sparkling wine, means the retained wine portfolio consists of a collection of wines that are “predominantly priced US$15 and above”. The sale was first announced in April although financial details remain undisclosed.
“We are pleased to have completed this transaction and look forward to executing against our repositioned portfolio, focused exclusively on the higher-end that more closely aligns to consumer-led premiumisation trends, which we believe will enable us to help deliver improved performance within this segment of our business over time,” said Constellation CEO Bill Newlands.
The seller also commenced a review of its “organisational structure” when it first revealed the sale. The review, which should be completed by the end of February next year, is expected to secure annual savings in the region of $200m.
Constellation booked a 1% sales rise in the three months to the end of February, flagging wider concerns over the current consumer sentiment among the Hispanic population in the US.
