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ROCHESTER, N.Y. - Constellation Brands (NYSE: STZ), a prominent producer and marketer of alcohol beverages with a market capitalization of $31 billion and annual revenue of $10.2 billion, has finalized the sale of several mainstream wine brands to The Wine Group. The transaction, which includes brands such as Woodbridge, Meiomi, and Robert Mondavi Private Selection, was part of Constellation’s strategy to focus on its higher-end wine and spirits portfolio. According to InvestingPro data, the company has demonstrated its commitment to shareholder value by consistently raising its dividend for 10 consecutive years.
The divested brands also encompass Cook’s, SIMI, and J. Rogét sparkling wine, along with related inventory, facilities, and vineyards. Constellation has retained a portfolio of premium wines, which includes well-known labels like Robert Mondavi Winery and The Prisoner Wine Company, as well as craft spirits brands such as High West whiskey.
Bill Newlands, President and CEO of Constellation Brands, expressed satisfaction with the completion of the deal and the company’s direction towards premium products aligning with consumer trends. The transaction is expected to improve performance in the upscale segment of Constellation’s business.
Constellation’s financial outlook for fiscal years 2026 through 2028 remains unchanged following the divestiture. This announcement underscores the company’s commitment to premiumization and its confidence in the growth of its remaining high-end alcohol portfolio.
The company’s portfolio reshaping comes as part of a broader industry trend where alcohol companies are increasingly focusing on premium and craft brands to drive growth. Constellation Brands, which also boasts a strong beer presence with labels such as Corona and Modelo, is positioning itself to capitalize on shifting consumer preferences toward higher-quality beverages.
This news is based on a press release statement from Constellation Brands.
In other recent news, Constellation Brands reported several significant developments. The company has priced a $500 million public offering of senior notes, with the proceeds intended for general corporate purposes such as debt repayment and capital expenditures. In addition, Constellation Brands has refinanced its $2.25 billion senior unsecured revolving credit facility, extending its maturity to 2030, which enhances the company’s financial flexibility. Moody’s Ratings upgraded Constellation Brands’ senior unsecured ratings from Baa3 to Baa2, citing expectations of stable debt-to-EBITDA leverage and strong margins. Truist Securities upgraded the company’s stock from Hold to Buy, raising the price target to $215, based on a consumer behavior study and underappreciated free cash flow. Moreover, the company announced a leadership change, with Paula Erickson set to become the new Executive Vice President and Chief Human Resources Officer in April 2025. These developments reflect Constellation Brands’ strategic financial maneuvers and leadership transitions aimed at sustaining growth.
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