Constellation to Purchase Mark West from Purple Wine Company
Constellation Brands, Inc. (NYSE: STZ), the world?s leading premium wine company, and Purple Wine Company, LLC, announced today that they have signed a definitive agreement under which the Mark West wine brand is being sold to Constellation Brands. Mark West pinot noir, with a 35 percent volume growth rate in the last 12 weeks according to SymphonyIRI, is the nation?s best-selling pinot noir and a leader in wine priced $10-$12 at retail. This recent success caps 10 years of double digit growth for Mark West, which has grown into a nearly 600,000-case brand sold primarily in the U.S.
?Mark West is one of the fastest-growing major pinot noirs in the market and has exceeded the growth of the category. It is an exciting addition to our portfolio and fills a gap in our portfolio of pinot noir brands,? said Rob Sands, chief executive officer, Constellation Brands. “We have a successful track record of integrating high-growth brands into our portfolio and maintaining their strong marketplace momentum.?
?While we did not search out this opportunity, it was an offer that made a great deal of sense given the evolution of the brand and the unique strengths and capabilities of Purple Wine Company,? said Purple Wine Company Owner and CEO Derek Benham. ?Mark West had reached a critical juncture in its development. Purple Wine Company has grown Mark West to the point where it requires a company with the scale, reach and resources of Constellation Brands to sustain that growth.?
The transaction includes the Mark West trademark and inventories of wines from three California appellations: a California pinot noir, a Russian River reserve pinot noir and a Santa Lucia reserve pinot noir, along with a chardonnay. The deal is expected to close in July 2012 and is subject to customary closing conditions.