Constellation Brands has reached an agreement to sell its Canadian wine business, including one of travel retail’s biggest success stories, Inniskillin IceWine, to Ontario Teachers’ Pension Plan.
The C$1.03 billion (US$771.3 million) deal, which also includes Jackson-Triggs, is subject to regulatory approval. It is expected to close by the end of the calendar year.
Constellation has retained Black Velvet Whisky and its production facility in Alberta.
In related news, Constellation is poised to acquire Charles Smith Wines, High West Distillery, and a minority stake in Bardstown Bourbon Company.
Charles Smith Wines is an independent winery, the third largest in the US state of Washington. It adds five super and ultra-premium wines – Kung Fu Girl Riesling, Velvet Devil Merlot, Boom Boom! Syrah, Eve Chardonnay and Chateau Smith Cabernet Sauvignon – to the Constellation portfolio.
That range includes Robert Mondavi, Clos du Bois, Kim Crawford, Meiomi, Mark West, Franciscan Estate, Ruffino and, another recent acquisition, California’s The Prisoner Wine Company.
Constellation’s spirits brands include Svedka vodka and Casa Noble tequila.
According to Constellation Brands Vice President Global Travel Retail Randy Dufour, High West Distillery is regarded as a fast-growing, hipster bourbon brand which has experienced double-digit volume growth for the past three years.
The High West portfolio includes four core products: American Prairie Bourbon, Double Rye!, Rendezvous Rye and Campfire, said to be the only blend of Scotch, bourbon and rye whiskies on the market. High West Distillery also produces several limited-edition whiskeys.
Constellations Brands President Wine and Spirits Division Bill Newlands said: “With the addition of High West, Constellation Brands bolsters its position in the dynamic and growing craft spirits category. We look forward to welcoming this creative and talented team to Constellation Brands as we work together to drive growth for High West and build our premium spirits portfolio with brands that consumers love.”
High West CEO John Esposito said: “We craft innovative whiskey blends that reflect our sense of adventure and pioneering spirit. When it came to the next step for High West, we wanted to work with the right partner that will help us grow further while maintaining our culture and core values. With the strength of the Constellation Brands team, we will be able to reach more consumers and continue our track record of innovation.”
Constellation is regarded as a leader in the US beer market with brands including Corona, Modelo Especial, Modelo Negra and Pacifico. Craft beer Ballas Point is another recent acquisition.
Dufour commented: “2016 has been a good year for Constellation. Travel retail has kind of exploded as travellers’ awareness and interest in New World wines increases. We want to be a global player and these new acquisitions can only strengthen our position.”
