Constellation Brands, Inc. recently announced an agreement with E. & J. Gallo Winery to divest approximately 30 brands from its wine and spirits portfolio. The brands involved in the sale typically retail at $11 and below. Related facilities in California, New York and Washington were included in the $1.7 billion deal.
The transaction is still subject to the satisfaction of certain closing conditions, including the receipt of regulatory approval, but is expected to close at the end of the company's first quarter of fiscal 2020. Some of the brands included in the transaction include Ravensood, Clos du Bois, Hogue Cellars, Franciscan and Mark West
“One of the hallmarks of our success over the years has been our ability to evolve and stay on the forefront of emerging consumer trends,” said Bill Newlands, Constellation Brands president and chief executive officer. “This decision will help enhance organizational focus on a more premium set of wine and spirits brands that better position our company to drive accelerated growth and shareholder value. In turn, Gallo is acquiring a collection of great brands that complement their operational model and business strategy to provide quality products to consumers at every price point.”
Victor, New York-based Constellation’s remaining wine and spirits portfolio include Robert Mondavi, The Prisoner Wine Company, Kim Crawford, Ruffino and Meiomi. The company is the number three beer company in the U.S., with brands such as Corona, Modelo and Pacifico. It's spirits brands include SVEDKA Vodka, High West Whiskey and Casa Noble Tequila.