In a significant move, The Wine Group, a privately-held company based in Livermore, California, has announced that it has agreed to purchase several major California wineries, including Woodbridge, Simi, Meiomi, Cook’s, J. Roget and Robert Mondavi Private Selection, from Constellation Brands. The acquisition is expected to have a major impact on the California wine industry, which has been struggling in recent years. The Wine Group’s portfolio is dominated by mass-market brands like Franzia, Cupcake, Big House and MD 20/20, while Constellation’s portfolio includes a mix of mass-market and premium brands. However, with the acquisition of the California Pinot Noir Meiomi and the Healdsburg Cabernet house Simi, The Wine Group is poised to reposition itself towards the premium tier. The sale is the latest in a series of moves that suggest the California wine industry is in trouble. Vintage Wine Estates filed for bankruptcy in August, and there have been several winery closures in recent months due to a decline in sales. Constellation’s decision to sell off some of its lower-end brands is seen as a response to the changing market conditions. Despite the challenges facing the industry, The Wine Group is well-positioned to capitalize on the opportunities presented by the acquisition. The company has a strong track record of investing in wine production and has a significant presence in the California wine industry. The acquisition is also expected to have a major impact on the wine industry as a whole. With the sale of some of Constellation’s most recognizable brands, the company is signaling a major overhaul of its business strategy. The Wine Group, on the other hand, is poised to become a major player in the premium wine market. * Key Points:
+ The Wine Group has agreed to purchase several major California wineries, including Woodbridge, Simi, Meiomi, Cook’s, J. Roget and Robert Mondavi Private Selection. + The acquisition is expected to significantly increase the production capacity of The Wine Group. + The sale of some of Constellation’s lower-end brands is seen as a response to the changing market conditions.

The acquisition is also expected to have a major impact on the beer market. Constellation Brands owns the brand license to import and sell Modelo, Corona and Pacifico, among other beers. The company’s beer sales increased 3% in 2025, despite a decline in wine sales. However, the future of the wine industry is uncertain. The company’s stock price has dropped dramatically in recent months, and there have been signs of a major overhaul of the company’s business strategy. The Wine Group has also made some divestments in recent months, including the sale of Concannon Vineyard. * Timeline:
+ 2022: The Wine Group acquired five brands from Constellation Brands, including the Dreaming Tree. + 2023: Constellation Brands sold 30 wine brands to Gallo for $810 million. + 2025: Constellation Brands’ stock price dropped dramatically after the company published its third-quarter fiscal year results, which predicted a 5%-8% decline in wine and spirits sales. The acquisition is expected to undergo regulatory approval and is expected to close at the end of the first fiscal quarter of 2026. The deal is seen as a significant move to reposition the wine industry towards the premium tier. * Quoted Statement:
+ “This is not the first time Constellation has offloaded assets to the Wine Group, which acquired five brands, including the Dreaming Tree, from its competitor in 2022.” (Source: Constellation Brands)
The acquisition is also expected to have a major impact on the wine industry as a whole. * Key Figures:
+ 40 million: The Wine Group’s current annual production capacity. + 14 million: Constellation Brands’ annual production capacity. + $2.03 billion: Constellation Brands’ beer sales in 2025. The Wine Group is expected to benefit from the acquisition, with the company’s portfolio growing significantly. The acquisition is seen as a significant move to reposition the wine industry towards the premium tier. * Highlights:
+ The Wine Group is expected to become a major player in the premium wine market with the acquisition of the California Pinot Noir Meiomi and the Healdsburg Cabernet house Simi. + The acquisition is expected to have a major impact on the beer market, with Constellation Brands’ beer sales increasing 3% in 2025.