Dec 13, 2019

Constellation Brands revises deal with Gallo Winery

Modelo and Pacifico beer are a part of Constellation Brands. Photo: Justin Sullivan/Getty Images

Constellation Brands revised what had been a $1.7 billion deal to sell a portfolio of low-priced wine and spirits brands to E. & J. Gallo Winery, in order to satisfy Federal Trade Commission concerns.

The state of play: The deal value is now around $600 million lower, with Constellation retaining some of the brands, including Cook's California Champagne and J. Roget American Champagne.

Why it matters: Had the original deal gone through, estimates are that Gallo would have controlled up to 80% of America's discount sparkling wine market and almost its entire wine concentrate market.

  • More: In a separate transaction, Constellation will sell New Zealand-based Nobilo Wine brand and related assets to Gallo for $130 million.
  • The bottom line: "The proposed smaller sale would still rank as a tremendous moment within the U.S. wine sector, as Gallo would grow even bigger as the top U.S. producer and No. 3 Constellation would shrink to focus on its more profitable premium wine market. Gallo has 23% of the domestic wine market, while Constellation has 11%." — Bill Swindell, The Press-Democrat

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Billionaire owners of wine cave that hosted Buttigieg fundraiser call criticism "not fair"

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Why it matters: Sen. Elizabeth Warren (D-Mass.) on Thursday used the fundraising event to slam Buttigieg for taking campaign contributions from wealthy donors. Warren claimed politicians shouldn't be corrupted by money at the latest Democratic debate. Several 2020 hopefuls have shunned donations from wealthy individuals, PACs and lobbyists.

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Warren campaign warns supporters that fundraising has slowed 30% in 4th quarter

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Elizabeth Warren's campaign sounded an alarm on Friday to its supporters, saying in an email that it has only raised $17 million so far in the fourth quarter, per CNBC.

Why it matters: With just days left before the quarter's end on Dec. 31, that number is — at the moment — down 30% from the $24.6 million Warren brought in during the third quarter.

Go deeperArrowDec 27, 2019