Constellation Brands, whose portfolio includes Robert Mondavi wine, Modelo beer and Svedka vodka, is said to be looking to sell some wine brands from the California North Coast for over $3 billion.
The New York state-based public company has hired investment bank Goldman Sachs to court buyers for Clos Du Bois, Mark West, Arbor Mist, Cooks and other U.S. wine brands, news service Reuters reported Monday, citing sources. No deal for a sale reportedly was certain.
The Clos Du Bois winery is in Geyserville, located in Sonoma County's Alexander Valley appellation. Constellation bought the brand in 2004 along with several other brands for $885 million.
The company purchased the Mark West virtual brand in 2012 from Derek Benham, owner of Sonoma County's Purple Wine + Spirits, for $160 million. A key selling point was fast-growth as a pinot noir label.
A spokesman reportedly told Reuters in an email statement that Constellation Brands is focusing on organic, acquisition and innovation growth of higher-end wine and spirits brands.
“We are also considering a variety of potential actions to optimize value at the low end of our portfolio, so we can direct our growth efforts and investment dollars more fully towards our focus brands,” the spokesman told the news agency.