[ad_1]
Daniel Acker | Bloomberg | Getty Images
A case of Corona Constellation Brands Inc. beer is placed on a shelf in a cold room at a delivery in Ottawa, Illinois, USA on Tuesday, April 2, 2019.
Constellation Brands announced Wednesday that it would sell about 30 billion of its premium wine and spirits brands to E. & J. Gallo Winery for $ 1.7 billion, with the Corona beer maker focusing on brands more profitable.
In early February, the brewer said it was looking to sell some of its lower-end wine brands as it doubles its segment into the more profitable premium segment and turns to beer products and cannabis that targets young people.
The agreement mainly includes Constellation brands with a bottle price of $ 11 or less, such as Clos du Bois, Ravenswood and Mark West, as well as associated facilities. The company expects the transaction to be finalized by the end of the first quarter of the 2020 financial year.
Constellation, which will release its quarterly results on Thursday, retains many brands, including Robert Mondavi, Meiomi and Kim Crawford.
In 2016, the company sold its Canadian wine business to the Ontario Teachers' Pension Plan for an amount of approximately C $ 1.03 billion ($ 772 million). ($ 1 = 1.3342 Canadian dollar)
[ad_2]
Source link