Constellation Brands: sells downmarket wines to Gallo

(CercleFinance.com) - Constellation Brands has agreed to sell 30 wine and spirits brands to Californian family-owned company E.
& J. Gallo Winery for 1.7 billion dollars.

The sale comes as part of the group's "premiumization" strategy, as the divested portfolio consists of bottles that are mainly priced at 11 dollars or less, Constellation said.

The group said it now plans to focus on its remaining wine brands, such as Robert Mondavi, Kim Crawford - the number one sauvignon blanc in the US market - and Meiomi, the number one pinot noir in the US.

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