Constellation Brands has confirmed that it and Australian Vintage Ltd (AVL) have ended discussions for the potential combination of a portion of Constellation’s Australian and UK wine operations with AVL.
Constellation’s President and CEO Rob Sands is quoted as saying: “There were a number of goals both parties were attempting to accomplish through the combination. Over time, it became evident that despite both parties’ best efforts we were not going to be successful in accomplishing all these goals. Therefore, we mutually decided it was in the best interest of Constellation and AVL to discontinue our discussions and focus on our respective businesses.”
Constellation said it plans to continue to operate its Australian and UK businesses with a focus on achieving stronger results by increasing efficiencies, reducing costs and improving cash generation.
