Constellation sells UK and Australian wine business

23 December, 2010

Constellation Brands has sold its Australian and UK wine business to a private equity firm for A$290 million.

The deal includes brands such as Hardys and Banrock Station, as well as the company’s UK facilities and its half-share in Matthew Clark, its wholesaling division.

Constellation will retain a 20% share in the business, which is being bought by CHAMP Private equity of Sydney.

Rob Sands, president and chief executive officer of Constellation Brands, said: “During the last two years, Constellation has implemented a strategy focused on driving profitable organic growth through premiumising its world class brand portfolio and improving margins, return on invested capital and free cash flow.

“Constellation Wines Australia & Europe sells quality wines from the important Australian appellation and has significant scale, but continues to be faced with challenging market conditions. Therefore, the business is no longer consistent with Constellation’s strategy. We believe CHAMP has the requisite skills and motivation necessary for accelerating the success of the CWAE group.”




Bookmark this


Site Search

COMMENT

Richard Hemming MW: beware inverse snobbery

Few things can bring communal pleasure so intimately as wine. Apart from a hot tub, perhaps. Sport can trigger mass jubilation, film gives us shared empathy, but wine has a nigh-unique ability to bestow conviviality among us through a shared bottle – which makes it especially galling that we spend so much time divided over it.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter