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News Alert: Constellation To Sell Six Brands To The Wine Group

October 6, 2022

Constellation Brands has agreed to divest a portion of its mainstream and premium portfolio to The Wine Group in a deal expected to close later today. Terms weren’t immediately disclosed. The brands include Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons, and Charles Smith Wines.

Constellation sold off the majority of its popular and mainstream wine and spirits portfolio in 2021—notably in a 30-brand, $810 million sale to E&J Gallo—and says it’s now focused on competing predominantly in premium and fine wine and craft spirits segments, while continuing to invest in the growth of its remaining strategic mainstream wine and spirits offerings.

“This transaction will enable us to focus and shift our portfolio towards the higher end, positioning ourselves to continue delivering industry-leading growth and shareholder value with the right portfolio for our ambitions,” said Robert Hanson, EVP & President, wine and spirits division, at Constellation. “In turn, The Wine Group is acquiring great brands that complement its current strategy of continuing to build a premium wine portfolio.”

Constellation’s reshaped wine and spirits range now includes Meiomi, Kim Crawford, The Prisoner Wine Company, The Robert Mondavi family of brands, High West Whiskey, Casa Noble Tequila, Schrader Cellars, Double Diamond, To Kalon Vineyard Company, Simi, My Favorite Neighbor portfolio of brands, Lingua Franca, Nelson’s Green Brier and others.

According to Impact Databank, the largest of the brands The Wine Group is acquiring is The Dreaming Tree, which was at 320,000 cases in the U.S. last year. 7 Moons was at 175,000 cases, while Cooper & Thief adds another 125,000 cases and Monkey Bay depleted about 100,000 cases.—Daniel Marsteller

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