Constellation to buy Meiomi for $315m

Constellation Brands is to buy Napa-based wine brand Meiomi for $315 million, increasing its share of the US premium wine market.

The deal was announced on Wednesday and will see Constellation take control of Meiomi from Copper Cane LLC, a company controlled by Joseph Wagner, son of Caymus’ Chuck Wagner.

Founded by Wagner in 2006, Meiomi is known predominantly for its Pinot Noir, produced in coastal regions including Sonoma County, Monterey County and Santa Barbara County. Sales of the brand have increased by more than 50% over the last 52 weeks, largely driven by its Pinot Noir. It added a Chardonnay to its portfolio in spring 2014.

Wagner is said to be parting with the label in order to buy more vineyards and expand other wine brands.

“We are very proud of what our team and organization have accomplished with Meiomi in a relatively short timeframe,” said Wagner.

“What began as a labor 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.”

As part of the deal Wagner will stay on as wine consultant at Meiomi for the next two vintages.

“Meiomi complements the array of selections we offer consumers by filling a niche in our luxury portfolio,” said Jay Wright, president wine and spirits at Constellation Brands.

“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,” he added.

Constellation, whose other brands include Ravenswood, Simi Winery and Robert Mondavi wineries, is the third largest wine company in the US. Its purchase of Meiomi is the latest in a rash of purchases by big companies looking to snap up a premium north coast brands.

Earlier this year E&J Gallo purchased J Vineyards and Winery, while The Wine Group purchased the Benziger Family Winery.

The transaction is expected to close by the beginning of August.