Blog: Chris MercerConstellation Brands' great wine giveaway

Chris Mercer | 23 December 2010

Has Constellation Brands just ditched Hardys and a whole array of other wine operations for a fraction of the price it paid for them? That certainly looks to be what has happened today.

It looks like Christmas has come early for CHAMP, the private equity company that is to pick up 80% of Constellation's Australian, South African and UK wine operations for just AUD290m (US$290.8m). Constellation said that the deal included "virtually all" of its Australian wine business, so it is hard to see how the deal would not include Hardys, which is, afterall, virtually all of its Australian wine business.

Here, then, comes the 'ouch' moment. Constellation paid a whopping AUD1.85bn to acquire BRL Hardy in early 2003. Yes, you read that right. 

It looks like the business is now being sold off at the sort of deep discount price that you might expect to find many Australian wines sold for in UK supermarkets. If that is the case, executives at Foster's Group must be looking on in horror.

We have so far been unable to contact Constellation to obtain more detail on the sale, but we'll keep you posted.


BLOG

What is Heineken hiding up its sleeve in Australia?

Heineken is gearing up for a product launch in Australia this month. But exactly what the product is, the brewer is not saying....

BLOG

Anheuser-Busch InBev's craft brewers turn hermits in their own kingdoms

It's Summer in the northern hemisphere and the beer festivals are in full swing. Even the famously secluded North Korea is letting its regulation-cut hair down with the Taedonggang Beer Festival, name...

BLOG

Under the influencers - regulators crack down on sponsored social media

Drinks companies that use celebrities and influencers to endorse products via social media could be in line for some rule changes....

BLOG

Drinking & Driving? Ford and Jose Cuervo's Tequila cars

A couple of months ago, US-based Saltwater Brewery developed 'edible six-pack rings' in an effort to curb threats to wildlife....

just-drinks homepage



Forgot your password?