Constellation buys Meiomi luxury Pinot Noir brand as Q1 sales increase by 7%

By Nigel Huddleston

Published: 02 July, 2015

Constellation Brands is to pay US$315 million to add the premium California wine brand Meiomi to its portfolio.

Constellation Brands is to pay US$315 to add the premium California wine brand Meiomi to its portfolio.

Joseph Wagner, who controls Meiomi owner Copper Cane, will remain with the operation as a winemaker consultant for the next two vintages.

Meiomi was set up in 2006 and has established a foothold in the luxury wine market in the US with Pinot Noir made with grapes from Sonoma, Monterey and Santa Barbara.

IRI figures show value sales growth of over 50% in the past year. Cases sales were almost 600,000 in 2014.

A premium Chardonnay was added to the range in 2014.

It joins a Constellation portfolio which includes Robert Mondavi, Clos du Bois and Kim Crawford wines.

Jay Wright, Constellation's president of wine and spirits, said: "Meiomi complements the array of selections we offer consumers by filling a niche in our luxury portfolio.

"The rapid growth rate Meiomi has achieved in such a short time is evidence that the brand resonates with consumers, and we're excited about adding it to our wine portfolio."

Wagner added: "We are very proud of what our team and organisation have accomplished with Meiomi in a relatively short timeframe.

"What began as a labour of love with only modest distribution a number of years ago, has grown to become one of the best-performing and fastest-growing brands across all categories of wine.

"We are pleased to have found such a great successor with which to carry on the Meiomi tradition."

The acquisition came as Constellation announced a 7% increase in net sales, to US$1.6 billion, for the first quarter of its financial year with operating income ahead by 9% to $427 million.

Chief executive officer Rob Sands said: "We experienced improving market trends for our US wine business, posted better than expected results in Canada and delivered excellent dollar sales and depletion volume growth for our portfolio of spirits brands."

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