Constellation Brands, a leading force in the beverage alcohol industry, has announced a significant step in its ongoing strategic evolution: the divestiture of a selection of its mainstream wine brands, along with associated vineyards and facilities, to The Wine Group.
This transaction, expected to close following the end of Constellation’s first quarter of fiscal year 2026, is still subject to regulatory approval and other closing conditions.
This move is the latest milestone in Constellation's multi-year transformation strategy aimed at repositioning itself toward the premium and ultra-premium segments of the wine and spirits market. With the divestiture of well-known brands such as Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét, Constellation is doubling down on its high-end offerings and realigning its business to better cater to shifting consumer preferences.
Following the transaction, Constellation's retained wine portfolio will consist of an impressive array of prestigious and globally recognized labels, many of which are priced at USD 15 and above. The company will continue to own and operate iconic Napa Valley estates like Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, and The Prisoner Wine Company. The portfolio also includes notable names such as My Favorite Neighbor from Paso Robles, Kim Crawford of New Zealand (producer of the #1 Sauvignon Blanc in the U.S.), Ruffino Estates and Ruffino Prosecco from Tuscany, Sea Smoke from Santa Barbara, and Lingua Franca from Oregon’s Willamette Valley.
Complementing this elevated wine portfolio is Constellation’s award-winning craft spirits division, including High West whiskey, Nelson’s Green Brier whiskey, Mi CAMPO tequila, and Casa Noble tequila, which further diversify and strengthen its premium beverage offerings.
“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 of 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.”
As part of preparing for the next phase of its business, Constellation is undertaking a company-wide organizational review. This restructuring aims to ensure resources and investments are optimally allocated to support long-term growth and profitability. The initiative is expected to yield net annualized cost savings exceeding USD 200 million by fiscal year 2028, with the bulk of the restructuring set to conclude within fiscal year 2026.
By divesting lower-margin brands and intensifying its focus on premium labels, Constellation Brands is positioning itself as a powerhouse of high-end wine and spirits.
Source: Constellation Brands