Constellation Brands seals the deal with The Wine Group
After entering into an agreement to divest itself of six of its wine brands earlier this year, drinks giant Constellation Brands has confirmed the deal’s completion.
db reported in April how The Wine Group had agreed to acquire the Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét brands from Constellation, as well as three facilities in California and almost-3,000 hectares of vineyard.
Brands already owned by The Wine Group, which is headquartered in California, include Love Noir, The Dreaming Tree, Franzia and Benso Del Solo Sangria.
With the sale completed, though for an undisclosed sum, Constellation Brands has said that as far as its wine portfolio is concerned, the focus is on “higher-end” brands.
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President and CEO Bill Newlands said: “We are pleased to have completed this transaction and look forward to executing against our repositioned portfolio, focused exclusively on the higher-end that more closely aligns to consumer-led premiumisation trends which we believe will enable us to help deliver improved performance within this segment of our business over time.”
Among the brands which Constellation has retained are the likes of Robert Mondavi Winery and Schrader in Napa, New Zealand Sauvignon Blanc producer Kim Crawford, and Tuscan and Prosecco powerhouse Ruffino. The company has also said that its financial outlook for the next three fiscal years, provided shortly after the deal was announced, remains unchanged.
John Sutton, CEO of The Wine Group, cited the significant increase in personnel the deal brings: “We’re thrilled to close this exciting acquisition and welcome 500 new team members to our incredible team. The addition of highly-regarded brands – along with new sites that expand our in-house innovation capabilities – further empowers us to deliver the range of offerings consumers want, for all types of occasions. We’re very energised by the opportunities ahead.”
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