Constellation Brands has agreed to sell certain concentrate brands to Vie-Del, a Californian-based winery, distillery and fruit juice processor.
The deal includes grape juice concentrate Mega Purple, Mega Red, MegaNatural and Canandaigua Concentrate brands used in the company’s concentrates and high-colour concentrate business.
The transaction was made through the company’s wholly-owned subsidiary Constellation Brands US Operations.
Constellation Brand’s most recent divestiture closely follows its announcement to offload its Paul Masson Grande Amber Brandy and Nobilo Wine brands in two separate transactions, for a combined price of approximately $385m.
Both transactions follow on from Constellation’s decision to revise the terms of its wine and spirits deal with E & J Gallo Winery. Constellation has since been pursuing other opportunities to divest the brandy and wine brands and concentrate business excluded from the original agreement to companies “whose business strategies better align with the brands”.
According to Constellation Brands, both parties have agreed to various covenants and arrangements to facilitate the concentrate business transaction.
The deal is subject to customary closing conditions and financial details were not disclosed.
© FoodBev Media Ltd 2020