Constellation Brands has chosen not to comment on reports that a full withdrawal from the wine category is in the offing.
Citing “several people with knowledge of the negotiations and potential buyers”, US-based Wine Business published an article today (4 March) claiming that discussions about a total exit are taking place with Delicato Family Wines and The Duckhorn Portfolio. According to the report, Constellation’s “coastal (US wine) brands and assets would go to Duckhorn while Delicato would acquire Constellation’s Central Valley wine business”.
When contacted by Global Drinks Intel, Constellation subsequently said: “We do not comment on rumours and speculation.”
The group’s presence in wine has been overshadowed by its beer business, which comprises the former Grupo Modelo brands in the US. The likes of Corona and Modelo were acquired in the US only by Constellation as part of Anheuser-Busch InBev’s takeover of the Mexican beer business in 2013.
Despite its smaller size, Constellation’s wine division, which includes the Kim Crawford, Meiomi and The Prisoner Wine Co brands, has been bolstered, most recently in May last year by the addition of Santa Barbara-based Sea Smoke.
Constellation and Duckhorn have an existing link through Robert Hanson; the executive stepped down from the former, where he was its wine & spirits president, just over 12 months ago, resurfacing as Duckhorn’s CEO in January.
Hanson’s appointment came barely three months after Duckhorn was bought by private equity group Butterfly Equity.
