Constellation Brands has agreed to divest select mainstream wine brands to The Wine Group, focusing its portfolio on higher-end wines and craft spirits to align with evolving consumer preferences.

Target Information

Constellation Brands, Inc. (NYSE: STZ), a prominent beverage alcohol company, has signed an agreement to divest select mainstream wine brands and associated facilities from its expansive wine and spirits portfolio. This strategic move involves transferring ownership of brands such as Woodbridge, Meiomi, and Robert Mondavi Private Selection to The Wine Group. The transaction aims to streamline Constellation’s portfolio and is subject to regulatory approval, anticipated to close by the end of Constellation's first quarter of fiscal year 2026.

After the divestment, Constellation’s remaining portfolio will feature celebrated wines priced predominantly at $15 and above. This includes revered brands from Napa Valley like Robert Mondavi Winery and Schrader, as well as Kim Crawford from New Zealand and other esteemed wineries, ensuring a focus on premium offerings.

Industry Overview

The U.S. wine industry has been evolving with a marked shift towards premium products. Consumers are increasingly prioritizing quality over quantity, resulting in a robust market for higher-priced wines, which has seen consist