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Constellation Brands has signed an agreement with The Wine Group to divest primarily mainstream wine brands, related vineyards and facilities from its wine portfolio.

As part of the plans, Constellation is undergoing a review of its structure, something that is anticipated to deliver savings in excess of $200 million by 2028. In a statement, the company said the move will "ensure the company’s enterprise-wide structure, resources and investments are aligned to help optimise performance."

Constellation’s retained wine portfolio will consist of wines priced at $15 and above. It will include global brands such as Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, The Prisoner Wine Company and the My Favourite Neighbour family of wine brands among others.

Brands to be divested to The Wine Group include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI and J Rogét sparkling wine, along with associated inventory, facilities and vineyards. Constellation will retain its craft spirits portfolio.

Bill Newlands, Constellation Brands’ president and CEO, said: “This transaction reflects our multi-year strategy to reconfigure our business, resulting in a portfolio of higher-end wine and craft spirits brands that are aligned to evolving consumer preferences and help bolster our competitive position".

"Concentrating our wine and spirits portfolio in higher-growth segments remains an important element of our overall business strategy and complements our higher-end beer portfolio, aiming to ensure we continue to participate in more consumer occasions across beer, wine and spirits."

The transaction is subject to the satisfaction of certain closing conditions, including the receipt of regulatory approval, and is expected to close immediately following the end of Constellation’s first quarter of its fiscal year 2026.