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Constellation buys The Prisoner, other brands

April 2016
 
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Victor, N.Y.—Constellation Brands Inc., announced it is acquiring the The Prisoner and other brands from Huneeus Vintners in a deal worth approximately $285 million. Constellation's purchase includes The Prisoner, Saldo, Cuttings, Blindfold and Thorn brands.

Rutherford, Calif.-based Huneeus Vintners owns Quintessa Vineyards and purchased The Prisoner from founder Dave Phinney in 2010.

According to a statement by Constellation, The Prisoner portfolio of brands has grown by 30% per year in the last three years to reach 175,000 cases. "This acquisition aligns with our portfolio premiumization strategy, enables us to capitalize on U.S. market trends that favor high-end wine brands and strengthens our position in the dynamic and margin enhancing super-luxury wine category," said Constellation CEO Rob Sands.

The Prisoner is a red blend made with Napa Valley grapes and has enjoyed critical and consumer success since its release in 2003. Constellation’s acquisition of a premium red blend follows its $315 million purchase of Meiomi Pinot Noir last year from founder Joe Wagner who is part of the family that owns Napa Valley's Caymus Vineyards. Both deals follow the market trends of consumers paying more for higher quality red blends and Pinot Noir.

Constellation also announced it is evaluating an initial public offering for a portion of its Canadian wine business. "In fiscal 2016, our business in Canada delivered excellent overall financial results, outperformed the industry and gained market share, and we believe its full value is not being recognized,” Sands said in the company’s statement. “An IPO will create better visibility to this dynamic part of the business.”

A decision on the IPO is expected later this year.

 
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