Constellation Brands set to exit the wine industry

Constellation Brands, one of the biggest wine companies in the US, is reportedly planning to sell off its entire wine portfolio following a sharp decline in sales of 14% year-on-year to November 2024, according to a rumour leaked by Wine Business Monthly and reported in Decanter this week, while spirits sales also declined by 15%.

The New York-based firm owns over 100 brands including Robert Mondavi, Kim Crawford, and Meiomi. Reports suggest that Delicato Family Wines may acquire its Central Valley operations, while Duckhorn Portfolio, backed by private equity, could take over its coastal brands.

Constellation, once a major force in wine, pivoted to beer in 2013 after acquiring Grupo Modelo’s US business. Modelo is now America’s top-selling beer, and it seems wine has become a burden on the group, with a decline in wine consumption due to shifting demographics and health trends.