Daily Wine News: Constellation Brands Sells 30 Bargain Wines to Gallo

Posted by | Posted in Wine News | Posted on 04-05-2019

Constellation Brands

Constellation Brands

Constellation Brands has announced the sale of more than 30 of its less expensively priced wine and spirits brands to E&J Gallo for $1.7 billion, reports WineBusiness.com. The transaction will give Gallo about 22 percent market share by volume of the US wine market.

In the San Francisco Chronicle, Esther Mobley looks at what Constellation’s sale of the bargain-priced wines really means. “The main story in this Gallo-Constellation deal is the story of premiumization, that contemporary coinage referring to the growing demand for higher-priced products. Over the last decade, sales of wine in the sub-$9 segment have consistently declined. Now Constellation is essentially abandoning that segment entirely, focusing instead on the higher-priced (i.e. above $11) wine brands it is retaining…”

W. Blake Gray also considers what the sale means for the wine industry at large in Wine-Searcher.

In the New York Times, Eric Asimov explores Australia’s natural or “lo-fi” wine movement. “This counterculture is not a single group of winemakers working toward one goal, but a spectrum encompassing many different degrees of rebellion from the mainstream Australian standards set in the 1990s.”

Some have objected to Chinese-owned châteaux changing the names of the property. But is this ‘simply carrying on centuries of Bordeaux tradition’? Jane Anson explores the answer in Decanter. (subscription req.)

Eater says that the natural wine recommendations on Kourtney Kardashian’s newly launched lifestyle blog Poosh are actually good—and affordable. Bon Appétit’s Emily Schultz is also impressed.

Wine Enthusiast has teamed up with Amazon’s Alexa to provide wine and food pairing tips.

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