Constellation Brands, one of the leading global players in beverage alcohol, has officially completed its previously announced transaction with The Wine Group, marking a significant strategic shift in its wine portfolio.
The deal involves the divestiture of primarily mainstream wine brands along with their associated inventory, production facilities, and vineyards.
The brands now under The Wine Group’s ownership include recognizable names such as Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine. This move reflects Constellation’s long-term commitment to aligning its portfolio with premiumization trends—a key focus as the beverage alcohol market continues to evolve toward higher-end offerings.
A Streamlined, Premium-Only Wine Portfolio
Constellation will retain a high-end portfolio of globally recognized wine labels, with an emphasis on those priced at USD 15 and above. This includes icons from Napa Valley—such as Robert Mondavi Winery, Schrader Cellars, Double Diamond, and Mount Veeder Winery—alongside cult favorites like The Prisoner Wine Company and the To Kalon Vineyard Company. The portfolio also includes top regional and international performers like:
- Kim Crawford from New Zealand, currently the #1 Sauvignon Blanc in the U.S. by dollar sales
- Ruffino from Tuscany, offering both classic red wines and Prosecco
- My Favorite Neighbor wines from Paso Robles
- Boutique and cult producers like Sea Smoke (Santa Rita Hills) and Lingua Franca (Willamette Valley, Oregon)
In addition, Constellation continues to expand its award-winning craft spirits portfolio, which includes standout brands such as High West Whiskey, Nelson’s Green Brier Whiskey, Mi CAMPO Tequila, and Casa Noble Tequila.
Strategic Focus on Long-Term Growth and Market Trends
CEO Bill Newlands emphasized that this repositioning better reflects the company’s focus on long-term growth through premiumization:
“We are pleased to have completed this transaction and look forward to executing against our repositioned portfolio, focused exclusively on the higher-end. This aligns closely with consumer-led premiumization trends, which we believe will enable improved performance in the years ahead.”
The company confirmed that its fiscal year 2026, 2027, and 2028 outlooks remain unchanged, as presented in April 2025, signaling confidence in the strategic pivot and future performance trajectory.
Market Implications: A Bold Bet on the Premium Consumer
This move positions Constellation Brands as a leader in the premium wine and spirits space, differentiating itself from volume-driven competitors by targeting more affluent and brand-conscious consumers. The decision to offload value-tier brands also reflects a broader industry trend where consumer preferences are shifting toward quality over quantity, driven by health consciousness, lifestyle changes, and a desire for elevated experiences.
While The Wine Group gains robust brands with broad consumer recognition, Constellation doubles down on its identity as a premium powerhouse, primed to meet evolving market demands with agility, depth, and high-margin products.
Source: Constellation Brands