Separately this week, Constellation said it had also signed a deal to buy a range of five high-end wines from Charles Smith for US$120m.
It’s a purchase that has similarities to Constellation’s deal for Meiomi, a young and fast-growing wine brand that it bought in August last year.
Charles Smith is based in Washington State’s Walla Walla and its core collection of brands is only around 10 years old. Constellation has bought Kung Fu Girl Riesling, Velvet Devil Merlot, Boom Boom! Syrah, Eve Chardonnay and Chateau Smith Cabernet Sauvignon.
Constellation said these brands were in strong growth. Alongside a premium wine focus, Constellation has made little secret of its desire to reach more millennial drinkers in the US.
An industry insider also told earlier this year that a classic strategy for Constellation was buy promising brands and use its scale to build sales with distributors.
Charles Smith will consult to Constellation once the deal completes, expected in October.
‘Charles Smith is a visionary in the wine business and we are excited to welcome him to Constellation Brands and bring these wines to a larger audience,’ said Bill Newlands, president of wine and spirits at Constellation.
source Decanter
