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
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