SND: Gallo Closes Mega-Deal with Constellation Brands

Two wine industry giants exchange more than 30 wine brands for $810 million

SND: Gallo Closes Mega-Deal with Constellation Brands
Ravenswood was one of several wineries in limbo as the deal awaited FTC approval. (John Curley)
Jan 7, 2021

It's been a long time coming, but E.&J. Gallo has closed its acquisition of more than 30 wine brands and five wineries from Constellation Brands. The final price was approximately $810 million, consisting of approximately $560 million in cash paid at closing and up to $250 million in earnouts if brand performance targets are met over a two-year period after closing, according to Shanken News Daily, a sister publication of Wine Spectator.

The deal has been in the works for more than a year, held up as the companies worked with the Federal Trade Commission (FTC) to tweak it to win approval. The delay left some brands in limbo.

The sale is part of Constellation's effort to focus more on premium wine brands. Gallo sees potential in the value-oriented wine brands. The deal includes Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange and Wild Horse that will join the Gallo portfolio. With the acquisition, Gallo will also expand its winemaking footprint with the addition of five wineries located in California, Washington, and New York. Gallo is also acquiring the Nobilo New Zealand Sauvignon Blanc brand in a separate transaction with Constellation, for $130 million.

For more on the sale and what executives at both companies hope to accomplish, check out the full story at Shanken News Daily.

News Economy Winery Purchases and Sales California New Zealand United States Washington New York

You Might Also Like

Announcing Wine Spectator’s 16th Annual Video Contest

Announcing Wine Spectator’s 16th Annual Video Contest

What does wine mean to you? Submit your video story!

Jul 1, 2022
Turning Tables: At Long Last, José Andrés to Open Restaurant at D.C.’s Old Post Office

Turning Tables: At Long Last, José Andrés to Open Restaurant at D.C.’s Old Post Office

The chef and humanitarian is opening a new location of the Bazaar in the historic building …

Jun 30, 2022
Möet Hennessy Buys Napa's Joseph Phelps Vineyards

Möet Hennessy Buys Napa's Joseph Phelps Vineyards

The multinational luxury corporation has purchased a Napa icon, home of Insignia

Jun 29, 2022
Cava Bubbles Up

Cava Bubbles Up

Spain's signature sparkling wine has been overshadowed by Champagne and Prosecco, but …

Jun 28, 2022
Wine Spectator Reveals 2022 Restaurant Award Winners

Wine Spectator Reveals 2022 Restaurant Award Winners

Nearly 3,200 restaurants around the world earned honors for their ambitious wine programs, …

Jun 27, 2022
Chateau Ste. Michelle Without the Chateau?

Chateau Ste. Michelle Without the Chateau?

Washington state's biggest winery puts its flagship Woodinville property on the market

Jun 24, 2022