(Reuters) - Constellation Brands Inc (STZ.N), the U.S. producer of Corona and Modelo beers, is looking to sell some of its U.S.-based wine brands, in a deal that could be worth more than $3 billion, according to four people familiar with the matter.
Constellation’s review of its wine portfolio underscores the family-controlled company’s gradual shift to beer and cannabis products that target a younger demographic. Founded as a small wine producer in upstate New York in 1945, Constellation has grown to be worth more than $40 billion thanks to bets on offerings such as premium imported Mexican beers.
Constellation, the third-largest brewer in the United States behind Anheuser-Busch NV (ABI.BR) and MillerCoors, has hired investment bank Goldman Sachs Group Inc (GS.N) to explore the divestitures, the sources said on Monday.
Among the wine brands that Constellation is considering selling are Clos du Bois, Mark West, Arbor Mist and Cooks, one of the sources said. Collectively, Constellation could sell wine brands that generate 12-month earnings before interest, tax, depreciation and amortization of more than $260 million, according to the sources.
The sources cautioned that no deal was certain and asked not to be identified because the matter is confidential.
“We continue to focus on driving growth organically and through acquisition and innovation at the higher end of our wine & spirits portfolio, which has consistently grown three- to four-times the U.S. market rate,” a Constellation spokesman said in an emailed statement.
“We are also considering a variety of potential actions to optimize value at the low end of our portfolio, so
