Not entirely. There is incomplete reporting on this deal.
Charles Smith sold 5 of his wine brands not all of the other holdings. "Constellation Brands added to its burgeoning collection of premium wine brands, announcing this morning an agreement to purchase five Washington brands from Charles Smith Wines for $120 million. The sale is expected to close later this month. With this deal, Constellation says it will become the second largest supplier of Washington state wines.
The deal features five wines that Charles Smith calls “the five core brands” of his company—Kung Fu Girl Riesling, Eve Chardonnay, Boom Boom Syrah, Velvet Devil Merlot and Chateau Smith Cabernet Sauvignon. Altogether, the brands add up to nearly 500,000 cases per year, selling mostly at $12 to $15 a bottle."
So it sounds like he sold all his super high production sort of wines that can be found in grocery stores, but still maintains ownership of all the small production stuff under the K Vintners and other smaller labels.
I wonder if there are tangible assets included in the deal, like land? Otherwise that price seems to make no sense at all
tell that to dave phinney and joe wagner.
Just read this brief article on the subject as I hadn’t followed it closely… that’s some crazy stuff there
for the price, I’ve enjoyed a lot of Eve chard, Velvet Devil merlot and Boom Boom syrah. pretty dang good high production stuff.
Brand over land when the numbers work. "Altogether, the brands add up to nearly 500,000 cases per year, selling mostly at $12 to $15 a bottle."
These brands are popular and well-made for high production wines. And from WA State where the production cost structure can be lower than CA.