Constellation Brands Inc. STZ, -1.45% said Thursday it is divesting part of its mainstream and premium wine portfolio to The Wine Group in a move aimed at reshaping it toward the high end of the market. The deal includes Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons, and Charles Smith Wines, and is expected to close later Thursday. Constellation divested most of its popular and mainstream wine and spirits portfolio in 2021 and is now focused on premium and fine wine and craft spirits, while continuing to invest in the remaining strategic popular wine and spirits assets. “A key driver of our success has been our relentless focus on consumer preferences, including long-term consumer-led premiumization trends, and remaining agile in our approach to stay ahead of evolving marketplace dynamics,” said Robert Hanson, EVP and president of wine and spirits. The announcement came ahead of the release of fiscal second-quarter earnings expected shortly. Shares were down 1.3% premarket and have fallen 6% in the year to date, while the S&P 500 SPX, -1.02% has fallen 21%.
