| The deal, to be completed by the end of next month includes sale of about 1500 acres of vineyards in Napa and Sonoma as also the wineries and other assets owned by Fortune. It is expected to add momentum to the long-standing consolidation of the wine industry. Constellation is known to combine administrative and sales organisation but maintain brand identities, leaving winemaking operations generally intact.
Constellation sells wine at a range of prices, including many labels that typically retail for $8 to $11 a bottle in the US.
The Fortune wines sell approximately 2.6 million cases annually which include 2 million cases of Clos du Bois, the number two wine brand in the US. The last year's turnover was $214m.
The addition of Fortune's labels is expected to add to Constellation's already bulging inventory. With the purchase, Constellation will still control less than 5% of the world wine market with about 20% share of the California market. Gallo continues to be the biggest US producer.
Constellation became world's largest wine company in 2003 when it acquired Australia's BRL Hardy Ltd for $1.1b. It became California's top producer when it bought Robert Mondavi in 2004 for $1.3b. Last year, it purchased Canada's premier wine company, Vincor International for $1.1b. Its roots lie in selling cheap jug wines till it went on a winery buying spree a few years ago.
It now owns about 60 wineries around the world, with more than 300 labels under its belt. In addition to leading the United States in wine sales, Constellation is the largest wine company in UK,, Canada and Australia
The Upstate New York based giant has annual revenues of over $5.2 m and currently owns labels line Ravenswood, Mondavi, Inglenook, Simi etc.
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