Constellation Brands has lined up the sale of a raft of wine brands to California-based The Wine Group.
The divestment, financial details of which were not disclosed, has been framed by Constellation as an offload of “primarily mainstream wine brands”. The Wine Group, meanwhile, said it is buying “several popular, premium, and ultra-premium brands” from Constellation.
Either way, the multi-category group, which announced its results from fiscal 2025 today, said that once the sale has completed, its remaining wine business will sit predominantly at a per-bottle price of US$15 and above.
Among the brands heading to The Wine Group are Cook’s, J Rogét (sparkling wine), Meiomi, Robert Mondavi Private Selection, SIMI and Woodbridge. Also included are three production facilities and around 6,600 owned and leased vineyard acres throughout California.
“We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” said Wine Group CEO John Sutton. “The addition of these assets will build on our commitment to being a consumer-led company, delivering a diversified portfolio that offers consumers exceptional taste, quality and value … .”
Constellation CEO Bill Newlands hailed the agreement as allowing the group to “reconfigure” its business, resulting in “a portfolio of higher-end wine and craft spirits brands that are aligned to evolving consumer preferences and help bolster our competitive position.”
The seller has also commenced a review of its “organisational structure”. The review, which should be completed by the end of February next year, is expected to secure annual savings in the region of $200m.
In February, Treasury Wine Estates abandoned its search for an acquiror of its “commercial” wine brands after “offers received for these brands did not represent compelling value”.
