The parent company of the popular Corona and Modelo beers, Constellation Brands is looking to sell some of the wine brands in its portfolio.
As reported by "CNBC," multiple sources have said that Constellation is ready to make a deal that could be worth more than $3 billion.
The company has allegedly hired the investment bank Goldman Sachs Group to look into potential buyers.
"Among the wine brands that Constellation is considering selling are Clos du Bois, Mark West, Arbor Mist and Cooks, one of the sources said. Collectively, Constellation could sell wine brands that generate 12-month earnings before interest, tax, depreciation and amortization of more than $260 million, according to the sources," writes "CNBC."
Wine sales accounted for about 38.6 percent of the $7.6 billion of the revenue made by the alcoholic beverage giant last year. But this is a significant decrease from two years ago when wine sales made up 44.7 percent of net sales.
"We continue to focus on driving growth organically and through acquisition and innovation at the higher end of our wine & spirits portfolio, which has consistently grown three- to four-times the U.S. market rate," a Constellation spokesman said in a statement. "We are also considering a variety of potential actions to optimize value at the low end of our portfolio, so we can direct our growth efforts and investment dollars more fully towards our focus brands," the Constellation spokesman added in the statement.
In August, Constellation invested $3.8 billion to acquire 38 percent of the Canadian cannabis company Canopy Growth. Constellation had a 10 percent stake before its latest investment.
Learn more about how this brewer is shifting its focus at "CNBC."
As more beverage giants are investing in the cannabis sector, products with cannabis derivatives are growing wildly popular. Learn how CBD is making an impact in the foodservice industry on this recent episode of The Barron Report below.