Constellation Brands has successfully divested its mainstream wine brands to The Wine Group while retaining a premium-focused portfolio, aligning with consumer trends towards premiumization.

Target Information

Constellation Brands, a prominent beverage alcohol company based in Rochester, N.Y., has successfully completed the divestiture of key mainstream wine brands to The Wine Group. The divested brands include well-known names such as Woodbridge, Meiomi, and Robert Mondavi Private Selection, alongside associated inventory, facilities, and vineyards. Despite this divestiture, Constellation retains an impressive portfolio of premium wines, primarily positioned at a price point of $15 and above, featuring renowned labels from iconic wine regions globally.

The retained collection comprises notable brands including Robert Mondavi Winery, Schrader, and the My Favorite Neighbor family of wine brands, as well as internationally recognized wines like Kim Crawford from New Zealand. Constellation’s robust portfolio is further complemented by its award-winning craft spirits brands, ensuring their footing in both the high-end wine market and the spirits sector.

Industry Overview in the U.S.

The wine industry in the United States has seen a notable shift towards premiumization, with consumers increasingly favoring high-quality products over mainstream selections. This trend is indicative of a growing consumer preference for