Corona brewer Constellation is nearing a deal to sell some wine brands to E. & J. Gallo

Mar 17, 2019

(CNBC) - Constellation Brands is in advanced talks to sell its some of its low-end wine brands to E. & J. Gallo Winery, people familiar with the situation tell CNBC.

Constellation, which also sells Corona and Modelo beers, had hoped its wine business would fetch $3 billion. However, the sale is expected to be around $2 billion or less, said one of the people. Talks, however, are still ongoing and could fall apart. Among the points being discussed are which brands will be part of the sale.

Constellation put its U.S. wine business, which includes brands like Clos du Bois, Mark West, Arbor Mist, up for sale last year as part of its push to move further into cannabis. Constellation is the third largest beer company in the United States, behind Anheuser-Buschand MillerCoors. In November, it closed a $4 billion investment in the Canadian marijuana company Canopy Growth.

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