Constellation Brands Repositions Wine and Spirits Business to a Portfolio of Exclusively Higher-Growth, Higher-Margin Brands Aligned to Consumer-Led Premiumization Trends
Constellation Brands (NYSE: STZ) has announced a strategic agreement with The Wine Group to divest its mainstream wine brands and facilities, focusing on premium offerings priced $15 and above. The transaction is expected to close after Q1 FY2026, pending regulatory approval.
The retained portfolio includes prestigious brands like Robert Mondavi Winery, Schrader, The Prisoner Wine Company, and Kim Crawford - the #1 Sauvignon Blanc in the U.S. The company will also keep its craft spirits portfolio including High West whiskey and Casa Noble tequila.
Brands being divested include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI, and J. Rogét sparkling wine. The company is undertaking an organizational restructuring expected to deliver net annualized cost savings exceeding $200 million by FY2028, with most changes completed within FY2026.
Constellation Brands (NYSE: STZ) ha annunciato un accordo strategico con The Wine Group per cedere i suoi marchi di vino mainstream e le relative strutture, concentrandosi su offerte premium con un prezzo di $15 e oltre. Si prevede che la transazione si concluda dopo il primo trimestre dell'anno fiscale 2026, in attesa dell'approvazione normativa.
Il portafoglio mantenuto include marchi prestigiosi come Robert Mondavi Winery, Schrader, The Prisoner Wine Company e Kim Crawford - il Sauvignon Blanc numero 1 negli Stati Uniti. L'azienda manterrà anche il suo portafoglio di distillati artigianali, tra cui il whiskey High West e il tequila Casa Noble.
I marchi ceduti includono Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI e il vino spumante J. Rogét. L'azienda sta intraprendendo una ristrutturazione organizzativa che si prevede porterà a risparmi annuali netti superiori a 200 milioni di dollari entro l'anno fiscale 2028, con la maggior parte delle modifiche completate entro l'anno fiscale 2026.
Constellation Brands (NYSE: STZ) ha anunciado un acuerdo estratégico con The Wine Group para desinvertir sus marcas de vino convencionales y sus instalaciones, enfocándose en ofertas premium con un precio de $15 o más. Se espera que la transacción se cierre después del primer trimestre del año fiscal 2026, a la espera de la aprobación regulatoria.
El portafolio retenido incluye marcas prestigiosas como Robert Mondavi Winery, Schrader, The Prisoner Wine Company y Kim Crawford - el Sauvignon Blanc número 1 en EE. UU. La compañía también mantendrá su portafolio de licores artesanales, incluyendo el whiskey High West y el tequila Casa Noble.
Las marcas que se están desinvirtiendo incluyen Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI y el vino espumoso J. Rogét. La compañía está llevando a cabo una reestructuración organizativa que se espera genere ahorros anuales netos superiores a 200 millones de dólares para el año fiscal 2028, con la mayoría de los cambios completados para el año fiscal 2026.
콘스텔레이션 브랜드 (NYSE: STZ)는 프리미엄 와인 브랜드와 시설에 집중하기 위해 메인스트림 와인 브랜드와 시설을 매각하는 전략적 계약을 와인 그룹과 체결했다고 발표했습니다. 이 거래는 규제 승인을 기다리며 2026 회계연도 1분기 이후에 마감될 것으로 예상됩니다.
유지되는 포트폴리오에는 로버트 몬다비 와이너리, 슈레이더, 더 프리즌너 와인 컴퍼니 및 킴 크로포드 - 미국에서 1위의 소비뇽 블랑이 포함됩니다. 회사는 또한 하이 웨스트 위스키와 카사 노블 테킬라를 포함한 수제 주류 포트폴리오를 유지할 것입니다.
매각되는 브랜드에는 우드브리지, 메이오미, 로버트 몬다비 프라이빗 셀렉션, 쿡스, 시미, 그리고 J. 로제 스파클링 와인이 포함됩니다. 회사는 2028 회계연도까지 2억 달러 이상의 연간 순 비용 절감 효과를 가져올 것으로 예상되는 조직 개편을 진행 중이며, 대부분의 변화는 2026 회계연도 내에 완료될 것입니다.
Constellation Brands (NYSE: STZ) a annoncé un accord stratégique avec The Wine Group pour céder ses marques de vin grand public et ses installations, en se concentrant sur des offres premium à partir de 15 dollars. La transaction devrait être finalisée après le premier trimestre de l'exercice 2026, sous réserve de l'approbation réglementaire.
Le portefeuille conservé comprend des marques prestigieuses telles que Robert Mondavi Winery, Schrader, The Prisoner Wine Company et Kim Crawford - le Sauvignon Blanc numéro 1 aux États-Unis. L'entreprise conservera également son portefeuille de spiritueux artisanaux, y compris le whiskey High West et la tequila Casa Noble.
Les marques cédées comprennent Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI et le vin mousseux J. Rogét. L'entreprise entreprend une réorganisation qui devrait permettre de réaliser des économies annuelles nettes de plus de 200 millions de dollars d'ici l'exercice 2028, la plupart des changements étant achevés d'ici l'exercice 2026.
Constellation Brands (NYSE: STZ) hat eine strategische Vereinbarung mit The Wine Group angekündigt, um seine Mainstream-Weinmarken und -anlagen zu veräußern und sich auf Premium-Angebote zu konzentrieren, die 15 Dollar und mehr kosten. Die Transaktion wird voraussichtlich nach dem ersten Quartal des Geschäftsjahres 2026 abgeschlossen, vorbehaltlich der behördlichen Genehmigung.
Das behaltende Portfolio umfasst renommierte Marken wie Robert Mondavi Winery, Schrader, The Prisoner Wine Company und Kim Crawford - den #1 Sauvignon Blanc in den USA. Das Unternehmen wird auch sein Portfolio an Craft-Spirituosen, einschließlich High West Whiskey und Casa Noble Tequila, behalten.
Zu den veräußerten Marken gehören Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI und der Schaumwein J. Rogét. Das Unternehmen führt eine organisatorische Umstrukturierung durch, die voraussichtlich jährliche Nettoeinsparungen von über 200 Millionen Dollar bis zum Geschäftsjahr 2028 erzielen wird, wobei die meisten Änderungen bis zum Geschäftsjahr 2026 abgeschlossen sein werden.
- Strategic repositioning to focus on higher-margin, premium wines ($15+)
- Expected cost savings of over $200 million annually by FY2028
- Retention of Kim Crawford, the #1 Sauvignon Blanc brand in the U.S.
- Portfolio optimization aligns with premium consumer preferences
- Reduction in market share and revenue stream from mainstream wine segment
- Organizational restructuring may involve transition costs and disruption
- Loss of established mainstream brands like Woodbridge and Meiomi
Insights
Constellation Brands' decision to divest its mainstream wine portfolio represents a strategic realignment toward higher-margin premium segments. This transaction with The Wine Group sheds brands like Woodbridge and Meiomi while retaining those priced primarily above $15, including Robert Mondavi Winery and The Prisoner Wine Company.
The financial implications are substantial. The company projects
This repositioning follows a clear consumer premiumization trend across alcoholic beverages. By concentrating resources on upmarket wines and craft spirits, Constellation creates better strategic alignment with its already successful higher-end beer business, enabling more cohesive premium positioning across all beverage categories.
The organizational restructuring mentions implies significant workforce adjustments accompanying this portfolio transformation. This comprehensive approach—simultaneously streamlining the product mix, operational footprint, and organizational structure—reflects a decisive shift toward a more focused, premium-oriented business model that sacrifices scale for potentially improved returns on invested capital.
Constellation's divestiture marks a definitive pivot in industry strategy, moving away from the volume-centric "stack it high, sell it cheap" approach toward what beverage insiders call the "premiumization ladder." This strategic evolution removes lower-margin brands that were likely facing increasing pressure from private label competitors and boxing-in their premium positioning.
The retained portfolio now consists exclusively of brands with strong provenance stories and craft credentials—exactly what today's premium beverage consumer seeks. Notably, the company maintains Kim Crawford (the #1 Sauvignon Blanc in the US) while divesting Meiomi and Woodbridge, suggesting a careful valuation of brand equity versus volume metrics.
The transaction also streamlines Constellation's production footprint by transferring physical assets including vineyards and production facilities. This reduces capital intensity and fixed-cost burden while preserving the high-value intellectual property central to premium positioning.
What's particularly telling is the inclusion of craft spirits in this strategic refocus. High West whiskey and premium tequilas complement the wine portfolio by targeting similar premium consumption occasions and retail channels. This creates operational synergies in sales, marketing, and distribution despite the different product categories.
The
- Signs agreement with The Wine Group to divest1 primarily mainstream wine brands and related facilities from its wine and spirits portfolio
- Retained portfolio for Constellation includes a collection of award-winning, iconic brands, predominantly priced
$15 and above and in growing segments and channels
ROCHESTER, N.Y., April 09, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it has signed an agreement with The Wine Group to divest primarily mainstream wine brands and related vineyards and facilities from its wine portfolio. The transaction is subject to the satisfaction of certain closing conditions, including the receipt of regulatory approval, and is expected to close immediately following the end of Constellation’s first quarter of its fiscal year 2026.
Constellation’s retained wine portfolio will consist of a collection of highly regarded wines from top regions around the world, predominantly priced
“This transaction reflects our multi-year strategy to reconfigure our business, resulting in a portfolio of higher-end wine and craft spirits brands that are aligned to evolving consumer preferences and help bolster our competitive position,” said Bill Newlands, President and CEO, Constellation Brands. “Concentrating our wine and spirits portfolio in higher-growth segments remains an important element of our overall business strategy and complements our higher-end beer portfolio, aiming to ensure we continue to participate in more consumer occasions across beer, wine, and spirits.”
Brands to be divested to The Wine Group include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine, along with associated inventory, facilities, and vineyards.
In preparing to manage a more focused wine and spirits business following the anticipated close of the transaction, and to help ensure the company’s enterprise-wide structure, resources, and investments are aligned to help optimize the performance of the business and drive accelerated growth, the company is undergoing a review of its organizational structuring. This review is anticipated to deliver net annualized cost savings in excess of
Additional commentary and financial information related to the transaction will be included as part of Constellation Brands fiscal year and fourth quarter 2025 earnings release and financial tables, as well as other supporting materials, posted on Wednesday, April 9, 2025, after the close of the U.S. markets on the company’s investor relations website at ir.cbrands.com.
1 We entered into a definitive agreement to fully divest and, in certain instances, exclusively license the trademarks of a portion of our wine and spirits business, primarily centered around our remaining mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities
2 #1 in dollar sales, Circana, total U.S. Multi-Outlet + Convenience, 52 weeks ended March 23, 2025
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.
Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico, and Victoria; our fine wine and craft spirits brands including The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford.
As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For.
To learn more, visit www.cbrands.com and follow us on X, Instagram, and LinkedIn.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The word “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans, and objectives of management, including related to the repositioning of Constellation’s wine and spirits business, the anticipated closing of the transaction, the satisfaction of certain closing conditions including receipt of regulatory approval, the expected timetable for closing the transaction, Constellation’s efforts to align with evolving consumer preferences, bolster its competitive position, optimize performance, and drive accelerated growth, the outcome of the organizational structuring review, including the timing and amounts associated with anticipated net annualized cost savings, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements.
The forward-looking statements are based on management’s current expectations and should not be construed in any manner as a guarantee that any of the events anticipated by the forward-looking statements will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and Constellation does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
In addition to risks and uncertainties associated with ordinary business operations, the forward-looking statements contained in this news release are subject to other risks and uncertainties, including the completion of the transaction on the expected terms, conditions, and timetable, regulatory requirements, the outcome of the organizational structuring review, the actual amount of net annualized cost savings achieved, the accuracy of all projections, and other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 29, 2024 and its Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2024, which could cause actual future performance to differ from current expectations.
| MEDIA CONTACTS | INVESTOR RELATIONS CONTACTS |
| Amy Martin 585-678-7141 / amy.martin@cbrands.com Carissa Guzski 315-525-7362 / carissa.guzski@cbrands.com | Joseph Suarez 773-551-4397 / joseph.suarez@cbrands.com Snehal Shah 847-385-4940 / snehal.shah@cbrands.com David Paccapaniccia 585-282-7227 / david.paccapaniccia@cbrands.com |
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FAQ
What brands will Constellation Brands (STZ) retain after the Wine Group divestiture?
How much cost savings does STZ expect from its organizational restructuring by 2028?
Which wine brands is STZ selling to The Wine Group in 2025?
When will the STZ wine portfolio divestiture to The Wine Group close?
