Constellation sells wine business, loses top slot

Constellation is the world’s biggest wine producer, as mentioned elsewhere in the Brief. However, they are now set to lose the top spot to Fosters or E&J Gallo. Constellation is in the process of selling its British, Australian and South African wine business. The buyer is a Champ Private Equity. The price tag is said to be A$230 million, substantially less than the A$1.9 billion that Constellation paid for BRL Hardy, an Australian wine company, in 2003. The reason for the sale is apparently that they have difficulties getting a sufficient profitability in those parts of their wine activity. They will keep the American wine business. Read more www.decanter.com and www.jancisrobinson.com