By Connor Hart
Alcohol heavyweight Constellation Brands will undergo a review of its organizational structuring that is expected to save the company more than $200 million by 2028.
The disclosure came as the maker of Modelo beers and Kim Crawford wine on Wednesday inked a deal to sell some of its lower-costing wine brands, a move it said is aligned with consumers' preference for more premium brands.
Constellation said it will sell several brands, including Woodbridge and Robert Mondavi Private Selection, as well as related vineyards and facilities to the wine group.
Terms of the deal weren't disclosed. The sale is subject to certain closing conditions and expected to close immediately following the end of its fiscal first quarter.
Additional brands sold under the deal include Meiomi, Cook's, SIMI and J. Rogét sparkling wine.
The company's retained wine portfolio would consist of wines predominately priced at $15 and above, including Robert Mondavi Winery, Kim Crawford, Ruffino Estates and Ruffino Prosecco, and Lingua Franca.
"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," Chief Executive Bill Newlands said.
Concentrating the portfolio in higher-growth segments remains an important part of the company's business strategy, he added.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 09, 2025 17:07 ET (21:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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