Kim Crawford winery

Constellation Brands has announced that it has reached an agreement with The Wine Group to divest a portion of its mainstream and premium wine portfolio, including NZ brands Crafters Union and Monkey Bay.

This decision builds on the company’s efforts to establish a higher-end wine and spirits portfolio.

Constellation divested the majority of its popular and mainstream wine and spirits portfolio in 2021 and is focused on competing predominantly in premium and fine wine and craft spirits segments, while continuing to invest in the growth of its remaining strategic mainstream wine and spirits assets.

“A key driver of our success has been our relentless focus on consumer preferences, including long-term consumer-led premiumisation trends, and remaining agile in our approach to stay ahead of evolving marketplace dynamics,” said Robert Hanson, EVP and President, wine and spirits division.

“Over the past three years, we reshaped ourselves into a higher-end wine and spirits division with intentional, strategic mainstream plays and are moving our business towards becoming a leading global premium/fine wine and craft spirits portfolio.

“This transaction will enable us to focus and shift our portfolio towards the higher end, positioning ourselves to continue delivering industry-leading growth and shareholder value with the right portfolio for our ambitions.

“In turn, The Wine Group is acquiring great brands that complement its current strategy of continuing to build a premium wine portfolio.”

Constellation’s remaining wine and spirits portfolio contains a more focused set of brands aligned with consumer preferences, spanning mainstream, premium, fine wine and craft spirits segments, including Kim Crawford in Marlborough and Hawke’s Bay.