Treasury Linked To Potential Bid For Robert MondaviOctober 9, 2017
Treasury Wine Estates (TWE) is said to be interested in buying Napa’s iconic Robert Mondavi Wines from Constellation Brands. According to the Australian Financial Review, TWE is working with advisor Goldman Sachs toward a potential offer, though a TWE spokesperson called the AFR story “purely speculative” and declined further comment. In August, TWE CEO Michael Clarke told SND that the group continues to be on the hunt for luxury fruit and brands. “It’ll be fantastic if we can land one or two of the things we’re looking at,” Clarke said. Constellation, meanwhile, could not be reached for comment at press time.
Robert Mondavi was acquired by Constellation for roughly $1 billion in 2004. The franchise includes Robert Mondavi Private Selection (around $11-$14 a 750-ml.)—which was up 1% to 1.7 million nine-liter cases in the U.S. last year, according to Impact Databank—as well as the higher-end Robert Mondavi Winery range ($20-$173). The lower-priced Woodbridge by Robert Mondavi offshoot sells another 9.8 million cases annually.
With Robert Mondavi among Constellation’s most prestigious California wine brands, a sale seems unlikely. But for TWE—whose California portfolio includes brands like Beaulieu Vineyards, Sterling Vineyards and Chateau St. Jean—such a move would significantly bolster its U.S. offering, dovetailing with its clear ambition to raise its stateside profile. —Christina JelskiSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Constellation Brands, Robert Mondavi, Robert Mondavi Private Selection, Robert Mondavi Winery, Treasury Wine Estates, wine, Woodbridge by Robert Mondavi
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