As many of you know by now, or possibly don’t know, the wine industry is going through some of the hardest times they have ever seen. Brands are selling, closing, filing for bankruptcy, etc…
While this is all rumors, there is a possibility that there is truth behind this as some of the key leaders of CBrands wine growth are no longer with Constellation. Crazier is that CBrands also recently sold its top spirits brand, Svedka, leaving its portfolio fairly thin with Modelo/Corona, High West, Casa Noble and Nelson Bro’s (Nelson’s Green Brier), along with some other smaller investments. Here is the article discussing the rumor: (https://www.winebusiness.com/news/article/299062)
Delicato and Duckhorn could be good fits for these brands but they themselves have already had personnel cuts and declined extensions on vineyard contracts.
What does this means for you, the consumer? With every industry shake up comes the possibility of uncertainty and layoffs. It is happening all over right now but you may not be hearing it. I work in the industry at a decent sized winery and talk to many people. They’re scared. While many of us are not going out and buying Woodbridge anymore, that’s fine, we should be supporting the small brands we love as best as possible. Get that glass at dinner, buy the bottle on the website, go visit the tasting room if you can. Don’t over extend yourself but be prepared that your favorite brand may not make it past the next year or so. No matter what size they are.
Mods, if this is not allowed, I apologize and please delete. If this can remain, please, feel free to ask questions. The industry needs y’alls help more than ever.
by Foo4Fighters
10 Comments
Think it’s significant that Berkshire took a stake in them this month as well
Well it does make a lot of sense, constellation was known for enshitification of brands that they got into. Source cheap fruit, chem lab style wine making, and pricing structures (at least on the wholesale side) that gave little to no room for little guys to make any money. This type of business works when there is a lot of fat on the market, but is also part of the cause of collapse in said market. I worked with constellation for as many years as they were in our market here in Mass, and I can say that the common refrain from everyone who has ever dealt with them was : they are out of touch, and seemingly out just to exploit there brands with very little heed to the long term.
It’d be an odd shift after building a new corporate office in Rochester to shift away from the brands that made them who they are. That said, parts of their portfolio have been on the downside for a long time and I wouldn’t be overly surprised to see more bleed.
Constellation has notably never developed a brand through innovation. They’ve only bought brands from innovators and increased their production while watering down the quality. Which has led to destroying brands credibility. Now before you assume the pivot to Duckhorn’s parent company is going to be good for these brands, consider this: who did the parent company hire to oversee the wine portfolio this past month? Robert Hanson, who was the President of Constellation’s wine division from 2019-2024…
If Constellation went out of business tomorrow, I wouldn’t shed a single tear. I don’t buy any of their products, because they’re mostly shite, including their beers and spirits. Not to mention they’ve been involved in some really shady business practices in the past, including being part of a conspiracy to sell fake Pinot noir to U.S. consumers.
This makes me sad for some of the smaller brands I enjoyed a few years ago such as Lingua Franca. I’ve enjoyed their wines and how light and floral they can be compared to other Eola-Amity Hills favorites (Evesham Wood’s depth and complexity is hard to match imo). They have seemed to stay true to their work and style as of the recent vintages, but am hoping this wont have too negative an impact. That said, my dollars have been shifting over the last couple of years towards smaller producers with less staying power.
Side note: I live in a large metro area and found one of the entry level ‘Avni’ Pinot Noirs from Lingua Franca at a small wine bar up north for a 75% markup from our at cost price in the city. Some of the markups I’ve seen lately in smaller communities helps the numbers make sense – who’s buying that over a $3 beer? Not many.
I’ve been hearing rumors for a few weeks. Glad to see it get confirmed.
Not buy that glass at a restaurant for $17
Good fucking riddance.
Who buys Robert Mondavi and Opus One?