Gallo Acquires More Than 30 Wine and Spirit Brands

Seller Constellation Brands to focus on premium drinks
Photograph: Shutterstock

MODESTO, Calif., and VICTOR, N.Y. — E. & J. Gallo Winery will take over ownership of many of the low-end wine and spirits brands from the Constellation Brands Inc. portfolio. The purchase agreement, announced April 4, includes more than 30 wine and spirits brands priced at $11 retail and below, along with six winemaking facilities in California, Washington and New York. The total deal is valued at $1.7 billion.

“One of the hallmarks of our success over the years has been our ability to evolve and stay on the forefront of emerging consumer trends,” said Bill Newlands, president and CEO of Constellation Brands. “This decision will help enhance organizational focus on a more premium set of wine and spirits brands that better position our company to drive accelerated growth and shareholder value.”

Among the brands that Gallo will take over are Clos du Bois, Black Box, Estancia, Mark West, Wild Horse, Franciscan and Ravenswood.

“Gallo is acquiring a collection of great brands that complement their operational model and business strategy to provide quality products to consumers at every price point,” said Newlands, who assumed the lead position at Constellation Brands on March 1.

Wineries included in the deal are Mission Bell, Turner Road Vintners, Clos du Bois and Wild Horse in California; Hogue Cellars in Washington; and Canandaigua in New York.

"We are committed to remaining a family-owned company focused on growing the wine industry. While we continue to invest in our premium and luxury businesses, we see a tremendous opportunity with this acquisition to bring new consumers into the wine category," said Joseph E. Gallo, CEO of Gallo. "We will continue to provide our customers and consumers with quality products at every price point."

Through acquisitions, strategic partnerships and new brand innovations, Modesto, Calif.-based Gallo has expanded and diversified its portfolio across all price points to meet growing consumer demand and evolving preferences, the company said.

Victor, N.Y.-based Constellation’s remaining wine and spirits portfolio includes Robert Mondavi, Prisoner Wine Co., Kim Crawford, Ruffino, Svedka and others.

The transaction is subject to regulatory approval.

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