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June 10, 2008
Constellation Sheds More Wine Brands
Constellation has moved to slim down its wine portfolio by selling off brands to Eight Estates Fine Wine for $209 million.
The cash-only deal represents around one million cases of wine, and Constellation said it would use the proceeds to reduce debts.
Sonoma-based Eight Estates will gain several brands, including wines acquired from Fortune as late as December 2007.
Constellation chief executive Rob Sands said: “Sale of these assets will aid in streamlining Constellation's US wine portfolio by eliminating brand duplication and excess production capacity."
The group predicted it would still report a pre-tax loss of $23m for its full-year.
The brands sold are:
Geyser Peak, Buena Vista, Gary Farrell, Atlas Peak and XYZin in California, which were acquired from Fortune Brands in December 2007.
Columbia Winery and Covey Run (including Sunnyside winery) in Washington State, and Ste. Chapelle in Idaho, all acquired in 2001 from Corus Brands.
Source: “Constellation sells wine brands,” Chris Mercer, Drinks Int., June 10, 2008
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June 07, 2008
Constellation Selling Three Top Labels
Posted by fortna at June 10, 2008 01:15 PM
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