The $810 million dollar deal between E&J Gallo and Constellation Brands was finally approved by the Federal Trade Commission. The deal sends 32 brands from Constellation to Gallo in a move that wine industry leaders say is a continuation of Constellation trying to become more upscale with their offerings. Clos du Bois, Franciscan, Ravenswood, Blackstone, and Mark West are just a few of the names changing companies.
The initial $1.7 billion dollar deal was announced in April of 2019. AgNet West spoke with Allied Grape Growers President Jeff Bitter in 2019 who said the deal had mixed reactions from the industry. Two months later the Federal Trade Commission got involved in the deal and requested more documents. That began an almost two-year delay to the finalization of the purchase.
Bitter said back in 2019 that the uncertainty was causing problems. “In their defense, it’s very difficult for them to make decisions on buying grapes and investing in supply if they don’t know whether or not this deal will be fully authorized,” he said.
The conclusion to the deal excludes two of the original brands and reduces the purchase price from $1.7 billion to the final $810 million. The acquisition includes wineries in California, Washington, and New York and a brand of health products made from winegrape extracts.
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