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The Wine Group, a global producer of wine and other alcoholic beverages headquartered in Livermore, announced that it is set to acquire several wine brands and associated assets through a mutual agreement with Constellation Brands, Inc.
Those expected to transfer from Constellation — an international producer and marketer of beer, wine and spirits — to TWG’s 120-plus alcohol portfolio include Cook’s, J. Rogét, Meiomi, Robert Mondavi Private Selection, SIMI and Woodbridge.
Along with the labels, TWG is also set to acquire associated inventory, approximately 6,600 acres of owned and leased vineyards throughout California and three facilities including production sites in Lodi and Monterey County as well as the SIMI winery in Healdsburg.
Through the agreement, TWG aims to grow and diversify its portfolio, increase on-premise volume, expand its retail presence and welcome new in-house operational capabilities, according to the company’s statement this month.
Meanwhile, Constellation aims to narrow its wine brands to “higher-end wine,” the company said in a separate statement.
The transaction must pass regulatory review, per standard protocol, but the deal is expected to close immediately after May 31, according to Constellation’s announcement. The purchase price was not disclosed by either company.
“We’re thrilled to enter into an agreement with Constellation to acquire these highly regarded brands and assets,” TWG CEO John Sutton said in a statement.
“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 added.
Known for its portfolio of labels including Franzia, Cupcake and Benziger, TWG has been in business for over 40 years. In addition to Livermore, the company has operations in Australia and New York.
The six wine brands TWG agreed to purchase include “popular, premium, and ultra-premium brands”, the company wrote.
In Constellation’s announcement, it described the agreement as a transaction of “primarily mainstream wine brands” with associated vineyards and facilities.
Constellation retains “highly regarded wines from top regions around the world”, with the majority costing consumers $15 or more per bottle, it stated. Wine brands it maintains include Napa Valley’s Robert Mondavi Winery, Schrader and Double Diamond; Tuscan’s Ruffino Estates and Ruffino Prosecco as well as Oregon’s Lingua Franca. In the beer industry, it holds brands like Modelo Especial, Pacifico and Corona Extra.
“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 President and CEO, Bill Newlands said in a statement.
Newlands added, “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”.
TWG declined to comment further prior to finalization of the transaction, and Constellation did not respond for additional comment.
