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.”




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Lifting the spirits

I were to sum up alcohol sales over Christmas 2017 in one word, it would be “gin”. At Nielsen, we define the Christmas period as the 12 weeks to December 30 and in that time gin sales were £199.4 million, which means they increased by £55.4 million compared with Christmas 2016. There’s no sign the bubble is about to burst either. Growth at Christmas 2016 was £22.4 million, so gin has increased its value growth nearly two-and-a-half times in a year. The spirit added more value to
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