Constellation Brands want to sell US-based wine brands

Constellation Brands, the owner of Corona and Modelo beers, is looking to sell its US-based wine brands, according to Reuters.

Constellation, the third-largest brewer in the United States behind Anheuser-Busch and MillerCoors, has hired investment bank Goldman Sachs Group to explore the divestitures, the sources said on Monday.

Any deal could be worth more than $3 billion.

The wine brands that Constellation is considering selling are Clos du Bois, Mark West, Arbor Mist, and Cooks. Its wine brands generate 12-month earnings before interest, tax, depreciation and amortization of more than $260 million, also according to Reuters.

Wine accounted for 38.6 percent of Constellation’s consolidated net sales of $7.6 billion in the 12 months to 28 February 2018, down from 44.7 percent of net sales two years ago.

Meanwhile, the company has been expanding into the legal marijuana industry, splashing out $3.8 billion in August to boost its 10 percent stake in a Canadian seller of marijuana products, Canopy Growth, to 38 percent.