MODESTO, Calif. (PRNewswire) — E. & J. Gallo Winery recently agreed to purchase more than 30 wine and spirits brands, along with six winemaking facilities, from Constellation Brands Inc.
Joining the Gallo portfolio as part of the $1.7 billion deal will be Clos du Bois, Black Box, Estancia, Mark West, Wild Horse, Franciscan, Ravenswood, Toasted Head, Cook’s, Hogue Cellars, Arbor Mist, Blackstone, J Roget, Vendange, Rex Goliath, Diseno, Hidden Crush, Taylor, Paul Masson, Blufeld, Manischewitz, Milestone, La Terre, Capri, Cribaldi, Primal Roots, Wild Irish Rose, Simply Naked and V.NO.
Also, as part of the agreement, Gallo will acquire several production facilities across the U.S., including Mission Bell, Turner Road Vintners, Clos du Bois and Wild Horse wineries 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,” said Joseph E. Gallo, chief executive officer of Gallo. “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.”
The bulk of the brands being acquired by Gallo retail for less than $11 each at retail, according to Constellation.
“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, Constellation Brands president and chief executive officer. “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. In turn, 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.”
Constellation’s remaining wine and spirits portfolio includes Robert Mondavi, The Prisoner Wine Co., Kim Crawford, Ruffino, Meiomi and Svedka vodka, as well as SIMI, Schrader Cellars and Mount Veeder Winery, Cooper & Thief and Spoken Barrel wine brands, High West whiskey and Casa Noble tequila.