Constellation Divests ‘Mainstream’ Wine Brands to Focus on Premium Portfolio
Constellation Brands is offloading several “mainstream” wine brands as it looks to optimize its portfolio and focus on craft spirits and higher-end options.
The Wine Group has agreed to purchase Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI and J. Roget, along with their related vineyards and facilities. The transaction is expected to close by the end of Constellation's first quarter of fiscal year 2026.
Constellation will maintain such brands as Napa Valley, Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, The Prisoner Wine Company, My Favorite Neighbor and Kim Crawford. These are primarily priced $15 and above.
Portfolio Optimization Strategy
Bill Newlands, president and CEO of Constellation Brands, said the transaction is part of the company’s multi-year strategy to reconfigure the business and better align with evolving consumer preferences.
Also read: Constellation Brands buys stake in non-alcohol brand
“Concentrating our wine and spirits portfolio in higher-growth segments remains an important element of our overall business strategy and complements our higher-end beer portfolio, aiming to ensure we continue to participate in more consumer occasions across beer, wine and spirits,” Newlands said in a statement.
As part of these efforts, Constellation is undergoing a review of its organizational structure, looking to deliver at least $200 million in net annualized cost savings by fiscal 2028, with the majority of optimizations to be completed within fiscal 2026.
