News Alert: The Wine Group Closes 12M-Case Deal For Constellation Wine Brands

The Wine Group has closed its previously announced acquisition of a number of wine brands and facilities from Constellation Brands for an undisclosed sum. The deal sees The Wine Group gain the Cook’s, J. Rogét, Meiomi, Robert Mondavi Private Selection, Simi, and Woodbridge labels, which combine for approximately 12 million cases in the U.S. market, according to Impact Databank.

The acquisition also includes production sites in Lodi, CA and Monterey County, CA, as well as the Simi winery in Healdsburg, CA, along with approximately 6,600 owned and leased vineyard acres throughout California. Approximately 500 employees who work at these sites and vineyards have now joined The Wine Group.

“To keep pace with evolving consumer and market trends, it was critical that we continued to invest in our operations infrastructure,” said Mike Donich, chief operations officer at The Wine Group. “With the addition of three new sites, which bring us critical new in-house capabilities, TWG is very well positioned to not only produce existing products more efficiently but bring innovative new offerings to market—quickly and cost effectively. It’s an exciting new chapter for TWG, rich with possibilities.”

After the divestiture, the Constellation wine and spirits stable still accounts for an estimated 5 million cases, tilted fully toward the higher end. Its wine lineup continues to include Napa Valley brands Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, and The Prisoner Wine Company; the My Favorite Neighbor family of brands from Paso Robles; Kim Crawford from New Zealand; Tuscan producer Ruffino Estates and Ruffino Prosecco; Sea Smoke from Santa Barbara’s Santa Rita Hills AVA; Lingua Franca from Oregon’s Willamette Valley; and others. The Constellation spirits portfolio continues to include High West whiskey, Nelson’s Green Brier whiskey, Mi Campo Tequila, Casa Noble Tequila, and others.

“The completion of this sale represents an important milestone and step forward in our commitment to a more focused, higher-end portfolio,” noted Sam Glaetzer, Constellation’s EVP and president of the Wine & Spirits division. “We’re excited about the opportunities ahead.”—Daniel Marsteller

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