Constellation to reduce presence in Australia
Constellation Brands is looking to sell three of its ten wineries in Australia following a strategic review of its Australian business. As well as selling off the wineries, the company plans to consolidate its bottling operations, sell of more than 20 of its vineyard properties and scrap more than 30% of its production lines. Up to 350 employees will lose their jobs as a result of the move.
The US-based wine company, whose best known Australian brands include Hardys and Banrock Station, will increase the focus on its higher-priced wine brands and eliminate less profitable lines to improve margins.
CEO Rob Sands says the project is part of ongoing efforts to enhance operating efficiencies, improve cash flow and return on invested capital and reduce existing borrowings.