Constellation Brands is reportedly looking to sell off some of its prominent wine brands as part of a push toward younger consumers.
Reuters reported that Constellation, the third-largest U.S. brewer, has approached Goldman Sachs to handle the potential sale of brands including Clos du Bois, Mark West, Arbor Mist and Cooks, which claims to be the oldest American champagne. The report comes on the heels of the announcement that Bill Newlands will become Constellation’s new chief executive at the beginning of 2019.
The top-selling part of Constellation’s portfolio is its beer brands, including Modelo and Corona. Wine slipped to 38.6% of Constellation’s net sales last year from 44.7% two years ago.
Selling off its wine brands would fit with Constellation’s apparent strategy of trying to appeal to younger consumers. In addition to its beer brands, Constellation became the first major alcohol company to get involved in the cannabis market when it bought a stake in Canopy Growth Corp., a Canadian cannabis company.