The ongoing “premiumisation trends” among consumers have prompted Constellation Brands to sell off another raft of lower-value brands, with California’s The Wine Group the recipient.
An unspecified number of “mainstream and premium” brands have transitioned to privately-owned The Wine Group in a move that comes 21 months after a similar transaction with E&J Gallo Winery was completed. Among the names are Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons, and Charles Smith Wines,
Financial details were not disclosed.
“Over the past three years, we reshaped ourselves into a higher-end wine and spirits division with intentional, strategic mainstream plays and are moving our business towards becoming a leading global premium/fine wine & craft spirits portfolio,” said Constellation’s president of the wine & spirits division, Robert Hanson. “This transaction will enable us to focus and shift our portfolio towards the higher end … .
“In turn, The Wine Group is acquiring great brands that complement its current strategy of continuing to build a premium wine portfolio.”
While today’s sale focuses Constellation’s wine and spirits portfolio towards the higher end of the value ladder, the company is still heavily skewed towards the beer category. In results for the three months to the end of August, also announced today, the beer business, which operates exclusively in the US, accounted for almost 81% of total sales.
Alcohol brand owners in 2022 – The winners and losers, so far – Category Intel
