Constellation Divests Mainstream Wine Brands to Double Down on Premium Strategy

Constellation Brands is continuing its portfolio refinement, announcing the divestment of several mainstream wine labels as it sharpens focus on high-end, high-growth categories.

The move includes shedding brands priced at $11 or below — part of a years-long strategy to reposition Constellation as a leader in premium wine and spirits. While the buyer was not disclosed, the deal marks another step in the company's evolution away from volume-driven business toward margin-rich products aligned with shifting consumer preferences.

The company's recent performance has been fueled by premium labels such as The Prisoner Wine Company, Meiomi, and Kim Crawford — all of which cater to experience-focused consumers seeking elevated occasions and quality-first choices. Constellation has also invested heavily in marketing, digital activation, and DTC innovation to support this strategic shift.

This divestment follows a broader trend among legacy beverage giants: trimming the bottom to build at the top. As consumer demand consolidates around fewer, better brands, the race to premiumize is accelerating across alcohol categories.

Corpbrief Insight:

Constellation’s move reinforces a new market reality — scale alone doesn’t guarantee relevance. In the modern wine industry, brand equity, consumer experience, and pricing power are the new growth levers. Expect other players to follow suit.