The Wine Group to acquire six brands from Constellation

Californian company The Wine Group has entered into an agreement to acquire several brands, facilities and more than 2,670 hectares of vineyard from Constellation. Headquartered in California, The Wine Group already owns a number of best-selling commercial brands including Cupcake Vineyards, which recently launched a wine in collaboration with hit Netflix series Love is Blind, and Franzia, known for its boxed wines and wine-themed Halloween costumes. The group has now entered into a formal agreement to acquire three further wine facilities and around 2,670 vineyard hectares (both owned and leased) from Constellation Brands. Included in the purchase are wine labels J. Rogét, Meiomi, Robert Mondavi Private Selection, SIMI, and Woodbridge. As part of the company's plans to grow and diversify its portfolio, The Wine Group's acquisition means it will now own a smattering of "premium and ultra-premium brands', as well as have access to "additional on-trade volume" and "an expanded retail presence", CEO John Sutton said.

Consumer-led company

“We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” said Sutton. “As one of the world’s largest wine producers, The Wine Group is proud of our more than 40-year legacy of providing some of the world’s most beloved wine brands with exceptional operational excellence. The addition of these assets will build on our commitment to being a consumer-led company, delivering a diversified portfolio that offers consumers exceptional taste, quality, and value - for any occasion.” Sutton has been CEO at The Wine Group since 2022, but prior to joining the organisation he worked at The White House during Bill Clinton's tenure as special assistant to the Deputy Chief of Staff and to the Counselor to the US President. The facilities The Wine Group will obtain through the acquisition include production sites in Lodi, Monterey County and Healdsburg in California, which will bolster its existing facilities across the US.

Organisational restructuring

For its part, Constellation is looking to offload some of its mainstream wine brands following a 7% slump in sales for the fiscal 2025 year. President and CEO Bill Newlands said the sell-off "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." He added that he plans to focus on wine and spirits in "higher-growth segments" in order to complement Constellation's "higher-end beer portfolio". However, in January 2025 Newland revealed that two of the brands it intends to offload to The Wine Group (the Robert Mondavi and Meleoni ranges) had improved performance and increased market share. The transaction is subject to regulatory review and is expected to be completed at the end of Q1 2026.