Corona maker Constellation to sell about 30 brands for $1.7 bln

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Constellation Brands Inc. said on Wednesday it would sell about 30 of its low-end wine and spirits brands to E. & J. Gallo Winery for 1.7 billion U.S. dollars, as the Corona beer maker focuses on more profitable brands.

In early February, the brewer said it was looking to sell some of its low-end wine brands, as it doubles down on the more profitable high-end segment and shifts towards beer and cannabis products that target a younger demographic.

The deal primarily includes Constellation's brands priced at 11 U.S. dollars or below a bottle such as Clos du Bois, Ravenswood and Mark West and the related facilities. The company expects the deal to close at the end of the first quarter of fiscal year 2020.

Constellation, which is set to report quarterly results on Thursday, retains a host of brands including Robert Mondavi, Meiomi and Kim Crawford.

In 2016, the company divested its Canadian wine business to Ontario Teachers' Pension Plan for about 1.03 billion Canadian dollars (772 million U.S. dollars).

Source(s): Reuters