Constellation Brands is reportedly considering selling its entire wine portfolio, following a significant slump in sales. The company, based in New York and owner of over 100 brands—including well-known names like Robert Mondavi and Meiomi—has encountered difficulties in its wine division in recent years.
Recent reports indicate that wine sales fell by 14% year-on-year during the three months leading to November 2024. Additionally, spirits sales experienced a decline of 15%. As part of a major shift, Constellation is expected to sell its Central Valley operations to Delicato Family Wines, which owns brands such as Francis Coppola and 1924. The company’s coastal brands are likely to be acquired by The Duckhorn Portfolio, which was recently purchased by private equity firm Butterfly Equity.
Founded in 1945 in New York’s Finger Lakes region, Constellation Brands initially gained recognition for its fortified wine, Richard’s Wild Irish Rose, before transitioning into a major wine producer through strategic acquisitions. A pivotal moment for the company came in 2013, when it acquired Grupo Modelo’s US operations after AB InBev’s purchase of Grupo Modelo was blocked by the US Department of Justice. This acquisition positioned Constellation as a significant player in the beer market, with brands like Modelo and Corona rising in popularity.
However, the wine and spirits segment has been dragging the company down. In September, Constellation issued a profit warning, predicting an impairment of up to $2.5 billion for its wine and spirits unit. According to SipSource data, total US wine sales saw a decrease of 6% in 2024, attributed to changing demographics, economic shifts, and growing health concerns. Constellation has now reportedly made the decision to exit the wine business altogether.