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Constellation Brands Agrees Sale Of Numerous Brands

Published on Jan 14 2021 8:19 AM in Drinks tagged: Trending Posts / Wine / Beer / spirits / Constellation Brands / E. & J. Gallo Winery / Vie-Del Company

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.

Transactions

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.

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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