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Constellation Brands Repositions Wine and Spirits Business to a Portfolio of Exclusively Higher-Growth, Higher-Margin Brands Aligned to Consumer-Led Premiumization Trends
STZConstellation Brands(STZ) Newsfilter·2025-04-09 20:30

Core Viewpoint - Constellation Brands, Inc. has signed an agreement to divest primarily mainstream wine brands and related vineyards and facilities to The Wine Group, aiming to focus on higher-end wine and craft spirits that align with evolving consumer preferences [1][3][7]. Group 1: Transaction Details - The divestiture includes brands such as Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI, and J. Rogét sparkling wine, along with associated inventory, facilities, and vineyards [3][6]. - The transaction is subject to regulatory approval and is expected to close immediately after the end of Constellation's first quarter of fiscal year 2026 [1][3]. Group 2: Retained Portfolio - Constellation's retained wine portfolio will consist of premium wines priced at 15andabove,includingbrandslikeRobertMondaviWinery,Schrader,andKimCrawford,aswellasaselectionofaward−winningcraftspirits[2][7][8].−Theretainedbrandsarepositionedinhigher−growthsegments,complementingConstellation′shigher−endbeerportfolio[3][7].Group3:StrategicGoals−Thetransactionreflectsamulti−yearstrategytoreconfigurethebusinesstowardsaportfolioofhigher−endbrands,enhancingcompetitivepositioningandaligningwithconsumertrends[3][4].−Thecompanyanticipatesnetannualizedcostsavingsexceeding15 and above, including brands like Robert Mondavi Winery, Schrader, and Kim Crawford, as well as a selection of award-winning craft spirits [2][7][8]. - The retained brands are positioned in higher-growth segments, complementing Constellation's higher-end beer portfolio [3][7]. Group 3: Strategic Goals - The transaction reflects a multi-year strategy to reconfigure the business towards a portfolio of higher-end brands, enhancing competitive positioning and aligning with consumer trends [3][4]. - The company anticipates net annualized cost savings exceeding 200 million by fiscal year 2028, with most restructuring efforts expected to be completed within fiscal year 2026 [4].