constellation brands selling wine

constellation brands selling wine插图

E. J. Gallo Winery
Corona-maker Constellation BrandsConstellation BrandsConstellation Brands, Inc., a Fortune 500 company, is an international producer and marketer of beer, wine and spirits. Constellation is the largest beer import company in the US, measured by sales, and has the third-largest market share of all major beer suppliers.en.wikipedia.orgis selling about 30 of its inexpensive wine brands toE. J. Gallo Wineryin a $1.7 billion deal. The move will let the company focus on its premium brands,which perform better for the company,Bill Newlands,CEO and president of Constellation Brands,said in a statement announcing the deal on Wednesday.

What happened to constellation’s wine business?

One of the United States’ leading wine marketers, Constellation Brands, announced that it will be divesting 30 of its brands, mostly wines that cost under $11 a bottle, to the Modesto, California-based E. J. Gallo. The company confirmed the sale in a press release yesterday and says that the deal will be closing at $1.7 billion.

What does the Constellation Brands sale mean for the industry?

For Constellation, the sale will allow the company to concentrate on its higher-end brands. “This move will help us drive focus on a smaller set of premium, high-growth brands that have gained significant momentum in the marketplace.

How does Gallo compare to Constellation Brands?

“Gallo now has even more clout with wine distributors, Constellation somewhat less. But Gallo also has the hassle of balancing channels and distribution management for many more SKUs and trying to avoid cannibalization of trade support or consumer purchases within its portfolio,” notes Miller.

What is the largest wine company in the world?

Wine As the world’s leading wine company, Constellation’s portfolio is both powerful and diverse. Our wines are enjoyed all over the world, on every table, at every occasion. Our impressive array of brands includes internationally acclaimed favorites crafted by some of the most esteemed winemakers in the industry.

What is the Constellation sale?

For Constellation, the sale will allow the company to concentrate on its higher-end brands. “This move will help us drive focus on a smaller set of premium, high-growth brands that have gained significant momentum in the marketplace. These brands more closely align with consumer premiumization trends, as they continue to shift to higher-end, higher-quality products like the Prisoner, Kim Crawford, Meiomi, Schrader, High West Whiskey, Casa Noble and SVEDKA Vodka [to name a few],” shares Michael McGrew, senior vice president of corporate communications in Constellation Brands’ Chicago office.

How much is the Constellation brand sale worth?

The company confirmed the sale in a press release yesterday and says that the deal will be closing at $1.7 billion. The decision was made, according to Bill Newlands, Constellation Brands’ president and chief executive officer, to “better align portfolio with consumer premiumization trends.”

Does Gallo have more clout than Constellation?

This deal will also shift the two companies’ value in the eyes of their distributors. “Gallo now has even more clout with wine distributors, Constellation somewhat less. But Gallo also has the hassle of balancing channels and distribution management for many more SKUs and trying to avoid cannibalization of trade support or consumer purchases within its portfolio,” notes Miller.

Is Gallo still a family owned company?

Gallo plans to continue to run the company’s branding and marketing as consistently as ever. “Gallo is committed to remaining a family-owned company focused on the wine industry. We believe the additional brands as part of this acquisition will build upon our already diverse portfolio of wines and spirits and provides us with increased production capacity to fuel future growth,” says a Gallo spokesperson in the company’s Modesto office.

Does Gallo count on buying power?

As a result of the purchase, “Gallo may count on its buying power to drive down costs, or hang on for an expected lower priced period in the grape pricing cycle,” adds Christian Miller, the proprietor of the Full Glass Research a number cruncher based in Berkeley, California.

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