One of the world’s largest alcohol producers, Constellation Brands, plans to shed some of its U.S.-based wine portfolio as part of a strategic shift to beer and marijuana products, according to an exclusive report by Reuters.
Constellation increased its ownership in Canadian licensed cannabis producer Canopy Growth in August with an industry-record investment of 5 billion Canadian dollars ($3.8 billion).
Any deal to sell its American wine brands could be worth more than $3 billion ($CA3.9 billion) for Constellation, which is the No. 3 beer maker in the United States, according to Reuters.
Goldman Sachs, which advised Constellation on the Canopy transaction, has been hired to explore the New York-based company’s sale of its wine brands.
Last week, Rob Sands said he would step down as CEO of Constellation in March.
Sands will transition to an executive chairman role, where he will oversee the firm’s investment in Canopy Growth, according to the Wall Street Journal.
Constellation President Bill Newlands will become CEO.