Constellation Brands May Soon Be Selling Some Wine Brands to E. & J. Gallo

According to sources familiar with the situation who spoke to CNBC, Constellation Brands, the maker of Corona, is in talks to sell some of its low-end wind brands to E. & J. Gallo Winery.

One of the sources has said that the company’s wine business is expected to sell for around $2 billion or less. The discussions are still ongoing and no deal could come out of this.

Constellation’s premium wine lines are priced at more than $11 per bottle and include the brands Kim Crawford, Meiomi and Prisoner.

The company’s newly appointed CEO Bill Newlands said recently that new products like Meiomi Rose and Svedka Blue Raspberry are “exceeding our expectations.”

It was last month that the company said it was looking to sell some of its lower-end wine brands.

E.&J. Gallo said it would not comment on “matters such as these”. E & J Gallo Winery is a winery and distributor headquartered in Modesto, California. It was founded in 1933 by Ernest Gallo and Julio Gallo, and is the largest exporter of California wines.

Disclaimer: We have no position in any of these companies and have not been compensated for this article.