Constellation Sheds Wine Brands in $12M-Case Sale to The Wine Group

Constellation Brands has closed the sale of a 12-million-case portfolio of wine labels to California-based The Wine Group (TWG) as of June 2. The deal transfers a slate of well-known value and mainstream brands – including Woodbridge by Robert Mondavi, Cook’s Sparkling, J. Rogét, Meiomi, Robert Mondavi Private Selection and Simi – to TWG, the country’s second-largest wine company by volume. These labels together accounted for roughly 12 million 9-liter cases in the U.S. last year. Along with the brands, TWG is acquiring major assets from Constellation: production facilities in Lodi and Monterey, the Simi Winery in Sonoma, 6,600 acres of California vineyards, and about 500 winery and vineyard employees who will now join The Wine Group. Financial terms weren’t disclosed, but the sheer scale of the transaction makes it one of the most significant wine M&A moves of 2025.

Constellation’s motivation is clear – the company is doubling down on higher-end wines and spirits, and shedding slower-growth, lower-margin lines. After this sale, Constellation’s remaining wine business will be less than half its former size (around 5 million cases) and “tilted fully toward the higher end” of the market. The firm retains esteemed brands such as Robert Mondavi Winery, Schrader Cellars, The Prisoner Wine Company, and high-profile imports like New Zealand’s Kim Crawford and Italy’s Ruffino. It also continues to own select craft spirits (High West whiskey, Nelson’s Green Brier, etc.) that complement its premium wine focus.

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“The completion of this sale represents an important milestone and step forward in our commitment to a more focused, higher-end portfolio,”

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said Sam Glaetzer, Constellation’s Wine & Spirits division president. Constellation is effectively wagering that premiumization – concentrating on pricier labels with strong brand equity – will yield better growth and profitability than the broad-market approach it pursued in years past.

For The Wine Group, which is known for budget-friendly hits like Franzia and Cupcake, the acquisition is a bold bet that it can revitalize and profit from these volume-driving brands. Many of the acquired labels have seen recent declines – combined depletions fell about 11% from 2023 to 2024 – amid changing consumer tastes. TWG’s leaders, however, see upside in integrating these names into their portfolio and leveraging new economies of scale.

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With the addition of three new sites, which bring us critical new in-house capabilities, TWG is very well positioned to not only produce existing products more efficiently but bring innovative new offerings to market – quickly and cost effectively. It’s an exciting new chapter for TWG, rich with possibilities,”

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said Mike Donich, The Wine Group’s chief operations officer. Gaining modern production facilities and vineyards in prime regions will allow TWG to improve supply chain control and potentially elevate quality across these acquired brands.

Strategic Insight: This mega-deal reflects two divergent plays in the wine sector. Constellation is pursuing a “less is more” strategy, pruning away high-volume but declining labels to focus on an upscale stable expected to deliver higher margins and brand prestige. It mirrors a broader industry pivot toward premium wines (typically $15+), which have shown more resilient demand growth as Americans drink “less but better.” On the flip side, The Wine Group’s expansion signals confidence that there is continued life – and profit – in the value segment when managed adeptly. By folding former Constellation staples into its efficient production machine, TWG can spread costs over greater volume and potentially rejuvenate these brands with refreshed marketing. For wine marketers, the takeaway is to play to your strengths: Constellation is concentrating on storytelling and allocation for high-end labels, while TWG doubles down on being the low-cost, high-volume leader. Notably, the transaction also hands TWG a direct-to-retail distribution boost (via new vineyards and facilities), which could improve speed to market and innovation capability. The coming year will reveal whether TWG can stabilize those sliding brands in its portfolio – and whether Constellation’s premium focus yields the growth uptick it anticipates. Either way, this realignment underscores a wine market increasingly split between premium indulgences and value-driven staples, with fewer players effectively straddling both ends.