Wednesday, August 10, 2005

Constellation Buying Rex Goliath?

Rich Cartiere's Wine Market Report reported Monday that Constellation is in talks to buy the Rex Goliath brand from Hahn Estates for $40-45 million. A pretty colossal number for a brand that was launched less than three years ago. This brand was on pace to sell over 500,000 cases in 2005, but was thought to be marginally profitable - making its money on sheer volume, with very little profit per case.

Is this the beginning of the end for the independent animal brands or just a chance for the owners to cash out far more than they would be able to get from continuing to sell the brand? Time will tell, I suppose....


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