Constellation buys Prisoner Wine Co for $285m

US drinks giant Constellation Brands has agreed to purchase The Prisoner Wine Company portfolio from Huneeus Vintners for a reported $285 million (£202m).

The Prisoner has become one of Napa’s most popular red blends since it was launched in 2003

The purchase of the Prisoner portfolio, which includes the flagship Prisoner Napa red blend along with Saldo, Cuttings, Blindfold and Thorn wines, is expected to be completed by the end of this month, Wine Spectator said.

The acquisition of the Prisoner portfolio strengthens Constellation’s offering in the growing Californian red blend category. Red blend sales in the US grew 8.7% by value and 3.2% by volume in 2015, according to Nielsen.

“More than ever, consumers are seeking high quality, distinctive wines, and the portfolio we are acquiring from The Prisoner Wine Company delivers,” said Bill Newlands, president of Constellation’s wine and spirits division.

“Our goal is to be a leader in the US wine market and to continue to premiumise our portfolio. We continually look for opportunities to strengthen our position within this portion of the industry.”

The Prisoner brand was launched by Orin Swift winemaker Dave Phinney in 2000. Phinney sold the brand to Huneeus Vintners in 2010.

This is the second major premium wine brand purchase Constellation has made in less than a year. As reported in the drinks business, the company bought Joe Wagner Pinot Noir brand Meiomi for $315m (£224m) last July.

Constellation’s recent acquisitions appear to have contributed to a strong share performance. Shares were up 3.9% to $157.25 per share following the Prisoner purchase, according to the Wall Street Journal. Constellation also raised its dividend 29% to 40 cents a share.