Constellation Brands Completes Divestiture of Mainstream Wine Brands to The Wine Group

Constellation Brands completes divestiture of mainstream wine brands to The Wine Group, focusing on premium wines and spirits.

Quiver AI Summary

Constellation Brands has completed its transaction with The Wine Group, divesting several mainstream wine brands including Woodbridge, Meiomi, and Robert Mondavi Private Selection, along with related inventory, facilities, and vineyards. The company will focus on a premium wine portfolio priced mainly at $15 and above, retaining celebrated brands such as Robert Mondavi Winery and Kim Crawford, alongside a range of craft spirits. CEO Bill Newlands expressed satisfaction with the transaction, emphasizing its alignment with consumer premiumization trends to enhance future performance. Constellation's outlook for fiscal years 2026 to 2028 remains unchanged following this divestment.

Potential Positives

Constellation Brands successfully completed the divestiture of primarily mainstream wine brands, allowing the company to focus on a premiumized wine portfolio that is expected to align better with consumer trends.
The retained wine portfolio includes respected brands and high-quality wines predominantly priced $15 and above, which may enhance the company's market positioning and profitability.
Constellation Brands' continuing commitment to premiumization and improvement in performance within the higher-end segment may lead to better financial outcomes in the upcoming fiscal years.
The press release reaffirms the company's fiscal outlook for the next three years, indicating stability and continuity in their business strategy following the transaction.

Potential Negatives

The divestiture of mainstream wine brands such as Woodbridge and Meiomi may signal a retreat from the broader wine market and could limit Constellation's presence in a segment that appeals to a larger customer base.
The reliance on higher-end products to drive future growth introduces risk, as consumer preferences can fluctuate and the premium market may not sustain consistent demand.
The press release includes numerous forward-looking statements that highlight uncertainties and risks, suggesting a lack of guaranteed performance improvements despite the strategic shift.

FAQ

What transaction did Constellation Brands announce?

Constellation Brands announced the divestment of its mainstream wine brands and related assets to The Wine Group.

Which wine brands were divested to The Wine Group?

The brands include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine.

What does Constellation's retained wine portfolio include?

It includes premium wines like Robert Mondavi Winery, Schrader, Kim Crawford, and acclaimed brands from top regions worldwide.

How does this transaction align with consumer trends?

This transaction focuses on higher-end brands, aligning with consumer-led premiumization trends for improved performance in the wine segment.

Will Constellation's fiscal outlook change after the transaction?

No, Constellation's fiscal year 2026, 2027, and 2028 outlook remains unchanged following the completion of the transaction.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

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SENATOR TOMMY TUBERVILLE sold up to $50,000 on 04/15.
REPRESENTATIVE ROBERT BRESNAHAN purchased up to $15,000 on 04/08.
REPRESENTATIVE JULIE JOHNSON has traded it 2 times. They made 0 purchases and 2 sales worth up to $30,000 on 04/01, 01/15.
SENATOR MARKWAYNE MULLIN sold up to $50,000 on 02/13.

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$STZ insiders have traded $STZ stock on the open market 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.

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SAMUEL J GLAETZER (EVP & Pres. Wine and Spirits) sold 3,150 shares for an estimated $593,901
WILLIAM T GILES purchased 1,000 shares for an estimated $186,390

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Wall Street analysts have issued reports on $STZ in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

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Barclays issued a "Overweight" rating on 04/14/2025
Needham issued a "Buy" rating on 02/10/2025
Piper Sandler issued a "Overweight" rating on 02/10/2025

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$STZ Price Targets

Multiple analysts have issued price targets for $STZ recently. We have seen 4 analysts offer price targets for $STZ in the last 6 months, with a median target of $210.0.

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Bill Chappell from Truist Financial set a target price of $215.0 on 05/07/2025
An analyst from Barclays set a target price of $205.0 on 03/13/2025
An analyst from RBC Capital set a target price of $289.0 on 03/07/2025
Dara Mohsenian from Morgan Stanley set a target price of $202.0 on 02/27/2025

Full Release

ROCHESTER, N.Y., June 02, 2025 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE: STZ), a leading beverage alcohol company, announced today that it has closed its previously announced transaction with The Wine Group to divest ₁ primarily mainstream wine brands and associated inventory, facilities, and vineyards from its wine portfolio. Brands divested to The Wine Group include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine.

Constellation’s retained wine portfolio consists of a collection of highly regarded wines from top regions around the world, predominantly priced $15 and above. This includes iconic Napa Valley brands Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, and The Prisoner Wine Company; the My Favorite Neighbor family of wine brands from Paso Robles; Kim Crawford from New Zealand—producer of the #1 Sauvignon Blanc in the U.S. ₂ ; acclaimed Tuscan producer Ruffino Estates and Ruffino Prosecco; sought-after gems like Sea Smoke from Santa Barbara’s Santa Rita Hills AVA, Lingua Franca from Oregon’s Willamette Valley, and more. This outstanding collection is complemented by Constellation’s award-winning craft spirits portfolio including High West whiskey, Nelson’s Green Brier whiskey, Mi CAMPO tequila, and Casa Noble tequila.

“We are pleased to have completed this transaction and look forward to executing against our repositioned portfolio, focused exclusively on the higher-end that more closely aligns to consumer-led premiumization trends which we believe will enable us to help deliver improved performance within this segment of our business over time,” said Bill Newlands, President and CEO, Constellation Brands. “We appreciate the dedication of our internal teams, and the support and collaboration from The Wine Group and our business partners to help us close this transaction and seek to ensure as smooth a transition as possible.”

Following the completion of the transaction, Constellation’s fiscal year 2026 outlook and its outlook for fiscal year 2027 and fiscal year 2028 provided on April 9, 2025 remain unchanged.

₁ We sold and, in certain instances, exclusively licensed the trademarks of a portion of our wine and spirits business, primarily centered around our 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 May 18, 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 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 brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Casa Noble Tequila and High West Whiskey.

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 executing against Constellation’s repositioned wine portfolio, Constellation’s efforts to align with consumer-led premiumization trends and to deliver improved performance within its wine and spirits segment over time, the transition of the divested brands and related inventory, facilities, and vineyards, and Constellation’s outlook for fiscal years 2026, 2027, and 2028, 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 any purchase price or other post‐closing adjustments, 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 28, 2025, which could cause actual future performance to differ from current expectations.

MEDIA CONTACTS	INVESTOR RELATIONS CONTACTS
Amy Martin 585-678-7141 / [email protected] Carissa Guzski 315-525-7362 / [email protected]	Joseph Suarez 773-551-4397 / [email protected] Snehal Shah 847-385-4940 / [email protected] David Paccapaniccia 585-282-7227 / [email protected]

A downloadable PDF copy of this news release can be found here .