Constellation Brands Sells Meiomi, Woodbridge, and More Major Wine Brands to The Wine Group
For the past several months, rumors circulated regarding Constellation Brands’ potential plans to exit the wine industry as the company continues to see the majority of its success in its Mexican beer brands.
On Wednesday, the Rochester, N.Y.-based brand confirmed these rumors, announcing an agreement to sell a major portion of its wine portfolio to Livermore, Calif.-based The Wine Group. The deal is expected to close following the end of Constellation’s first quarter in fiscal year 2026. Terms of the transaction have not been disclosed, and the agreement is subject to regulatory review.
The labels The Wine Group are set to acquire include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, Simi, and J. Rogét sparkling wine, the cumulative production of which totals 12 million cases. Constellation will maintain control of Mount Veeder Winery, The Prisoner Wine Company, Schrader, Double Diamond, Kim Crawford, and Robert Mondavi Winery (not to be confused with Robert Mondavi Private Selection), indicating a shift in the company’s focus away from mainstream brands and more toward the high-end, following the consumer trend toward premiumization.
“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,” Constellation Brands president and CEO Bill Newlands said in a press release. “Concentrating our wine and spirits portfolio in higher-growth segments remains an important element of our overall business strategy and complements our higher-end beer portfolio, aiming to ensure we continue to participate in more consumer occasions across beer, wine, and spirits.”
The Wine Group is the second largest wine supplier in America, representing over 120 brands including labels like Benziger, Cupcake, and Franzia and this acquisition is poised to even further its domination of the entry-level wine market.
“We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” John Sutton, CEO of The Wine Group said in a statement. “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.”
Constellation timed this announcement with its fiscal year and fourth quarter 2025 earnings report, which also includes an outlook for the upcoming four years. In the report, the company projects that these acquisitions will generate over $200 million in net annualized cost savings by fiscal year 2028.
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