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Diving Briefs:
- Constellation brand last week He said it would be sold Woodbridge, Meiomi, and some other cheaper cheap wines do not focus on categories of premium brands using private wine for wine groups. The company expects to save more than $ 200 million annually by 2028 due to sales.
- The constellation is expected to be affected by Trump’s tariffs on imported foreign products and the boycott of US products. Investor note From TD Cowen analyst Robert Moskow. Canadian sales account for about 20%of constellation wine and Spirit portfolio, Moskow estimates.
- Alcohol producers anticipated the wine and liquor sectors and were able to sell them. Between 17% to 20% Fiscal year in 2026. Net sales of wine products decreased by 7% during the 2025 fiscal year, which ended on February 28.
Dive Insights:
As the beer portfolio faces tariff uncertainty and slowdown with President Donald Trump’s immigration policy, Constellation hopes that some of the wine business can provide some relief.
Other wine maker constellations include Simi, Cook’s and J. Rogét Sparkling Wine. Some of the contracts with Constellation and Wine Group include three facilities in California and more than 6,600 acres of vineyards.
Constellation’s CEO Bill Newlands said that when the sales of low performance wine brands are completed, niche market sets can be beneficial to the company in the long run.
NEWLANDS said in the company’s import phone last week, “Our thoughts on the wine business are very similar to our work in beer. This creates wine and mental business at the higher end of business in the company’s import phone last week. It reflects that. “
Constellation said it is currently under review of the organizational structure of the wine business. Premium wines that the company keeps include Robert Mondavi, Kim Crawford and Ruffino.
Spiros Malandrakis, a head alcohol researcher at EUROMONITOR, said that this measure can eventually sell overall wine portfolios. He said the company’s focus on niche premium wines can be counterproductive in a difficult economic environment.
Over the past two years, the constellation has also relied on the acquisition to increase the existence of high -end wines. Last year, I bought Shardon, headquartered in Santa Barbara, California, and SEA Smoke, the producer of Pinot Noir. Modelo producers also bought Domaine Curry, co -founded by the wife Ayesha Curry of NBA star Stephen Curry in 2023.