Constellation Brands Agrees Sale Of Numerous Brands
US-based alcoholic beverages producer Constellation Brands has announced a streamlining of brands within its portfolio.
Constellation Brands has sold the Paul Masson Grande Amber Brandy brand, related inventory, and interests to Sazerac for approximately $265 million, subject to post-closing adjustments.
Last week, Constellation divested a portion of its wine and spirits portfolio, including some related facilities, and its Nobilo wine brand, to E. & J. Gallo Winery. The group also divested certain brands used in its grape juice concentrate business, as well as related inventory, interests in certain contracts, and liabilities, to Vie-Del Company.
Bill Newlands, Constellation Brands’ president and chief executive officer, referred to the transactions as a way to help "accelerate revenue growth and operating margin performance by advancing our vision of building a winning portfolio of distinctive, higher-end brands".
Newlands added that the group can now concentrate its "resources and focus behind a smaller set of more premium brands that better align with consumer premiumisation trends" such as Corona beer and SVEDKA Vodka.
Constellation Brands has recently branched out into marijuana production as a means of diversifying its portfolio, acquiring a 38.6% stake in the Canadian marijuana producer Canopy Growth Corp.
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