Constellation Brands announced its intention to sell 30 of its brands at once for $1.7 billion.
It is already known that the buyer of brands under which wines of the lower price segment are produced will be the Californian producer and distributor of alcoholic beverages E. & J. Gallo Winery.
Constellation Brands announced its intention to get rid of a number of brands back in February of this year. The reason for this decision is that the company is looking to move away from the lower division brands, moving to the more profitable high-end segment. Constellation Brands also plans to pay more attention to brands of beer and goods with cannabis content. It is assumed that these brands will be most in demand among young people.
Mostly brands under $11/bottle will be sold, such as Clos du Bois, Ravenswood and Mark West. At the same time, such popular brands in the US as Robert Mondavi, Meiomi and Kim Crawford will be preserved. The company expects the deal to close at the end of the first quarter of fiscal 2020.
Constellation Brands, Inc. has existed since 1945 and originally bore the unpronounceable name of Canandaigua Industries. At first, the scope of its activity was the distribution of wines. Over time, the company expanded significantly due to the absorption of other producers of alcoholic beverages, and the scope of its activities was no longer limited to wine only. Our best-known brand from the Constellation Brands portfolio is Coronaunder which light beer is produced.