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News
Constellation pays Fortune for wine business
Fortune Brands has agreed to sell its US wine business, Beam Wine Estates, to Constellation Brands in a deal worth US$885 million. The sale will include the Clos du Bois, Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell brands but Fortune Brands will retain control of Harveys sherry and Cockburn’s Port.
According to Norm Wesley, chairman and CEO of Fortune Brands, the divestment will enable the company to focus its resources on the higher return premium spirits segment. He commented: “Because the wine industry is lower margin and more capital intensive than spirits, it’s naturally a lower return segment relative to our spirits business.”
Fionnuala Synnott, 14/11/07