Constellation Brass on Translating Beer Strategy to W&S Portfolio

Dear Client: Yesterday, news broke that E&J Gallo agreed to purchase more than 30 of Constellation Brands' wine and spirits brands, as well as six winemaking facilities located in California, Washington, and New York, for $1.7 billion [see WSD 04-03-2019]. The news took top billing on this morning's earnings call. "This strategic action is a result of our ongoing efforts to identify value enhancing opportunities to better align our portfolio with consumer trade up trends and to strengthen the financial