01—Abstract
Summary
Summary of the 8-K filed June 2, 2025. Cited figures are marked; the original filing is the authoritative source.
On June 2, 2025, Constellation Brands, Inc. (NYSE: STZ) reported that it closed its previously announced transaction with The Wine Group, divesting primarily mainstream wine brands along with associated inventory, facilities, and vineyards.
Brands divested include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI, and J. Rogét sparkling wine. The company stated it sold and, in certain instances, exclusively licensed the trademarks of a portion of its wine and spirits business.
Constellation's retained wine portfolio is positioned as highly regarded wines predominantly priced $15a and above, including Robert Mondavi Winery, Schrader, Kim Crawford, Ruffino, and Sea Smoke, along with craft spirits such as High West whiskey and Casa Noble tequila. CEO Bill Newlands said the repositioned portfolio is focused exclusively on the higher end, aligned with consumer-led premiumization trends. The company stated that its fiscal 2026 outlook and its outlook for fiscal 2027 and fiscal 2028, provided on April 9, 2025, remain unchanged.
Separately, the company announced full redemption before maturity of its 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026, with $900.0 millionb in aggregate principal outstanding as of June 2, 2025. The 4.75% notes are to be redeemed on July 2, 2025, and the 5.00% notes on June 12, 2025, at a cash redemption price calculated under the supplemental indentures.
02—Key points
Key Highlights
- Closed the sale of primarily mainstream wine brands to The Wine Group, including Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI, and J. Rogét sparkling wine.
- The divestiture included associated inventory, wineries, vineyards, offices, and facilities, and in certain instances an exclusive license to use trademarks.
- Retained wine portfolio is focused on wines predominantly priced $15 and above, including Robert Mondavi Winery, Kim Crawford, Ruffino, and Sea Smoke.
- Retained craft spirits portfolio includes High West whiskey, Nelson's Green Brier whiskey, Mi CAMPO tequila, and Casa Noble tequila.
- Fiscal 2026 outlook and fiscal 2027 and 2028 outlooks provided on April 9, 2025 remain unchanged following the transaction.
- Announced full redemption before maturity of the 4.75% Senior Notes due 2025 (July 2, 2025) and 5.00% Senior Notes due 2026 (June 12, 2025), totaling $900.0 million in principal outstanding as of June 2, 2025.
03—Questions
Frequently Asked Questions
What assets did Constellation Brands divest to The Wine Group?
The company sold primarily mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities. Named brands include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook's, SIMI, and J. Rogét sparkling wine. In certain instances, the company exclusively licensed trademarks.
Did the divestiture change Constellation's fiscal guidance?
No. The company stated that its fiscal 2026 outlook and its outlook for fiscal 2027 and fiscal 2028, provided on April 9, 2025, remain unchanged following completion of the transaction.
What wine brands does Constellation retain?
The company retains a portfolio predominantly priced $15 and above, including Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, The Prisoner Wine Company, My Favorite Neighbor, Kim Crawford, Ruffino, Sea Smoke, and Lingua Franca.
What debt actions did Constellation announce alongside the divestiture?
Constellation gave notice for full redemption before maturity of its 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026. The 5.00% notes are to be redeemed June 12, 2025, and the 4.75% notes July 2, 2025. As of June 2, 2025, $900.0 million in aggregate principal was outstanding. The redemption price is payable in cash and calculated under the supplemental indentures.
04—Continue