Constellation Brands Puts Canadian Wine Business Up For Sale: WSJ

Shares of Constellation Brands, Inc. STZ moved higher Friday after report from the Wall Street Journal the company has put its Canadian wine business up for sale.

Constellation's Canadian wine business will be for sale at auction and is already receiving potential suitors, including the Ontario Teachers Pension Plan and an unknown buyer from the alcohol industry, according to the report. The reason for the sale? Constellation wants to focus more on premium wines and beer in the US.

The company made a record $1 billion acquisition of Ballast Point Brewing Company last year, right before it was set to be the first craft beer company to go public. Ballast Point is the fastest growing craft beer company in the nation. Constellation also bought fast growing Pinot Noir brand Meiomi, and Prisoner Wine Co. to boost its premium American portfolio.

While Constellation has a significant presence in all of North America, the company owns Mexican beer favorites, Corona and Modelo, an increase in focus on the U.S. market is a reason the company is giving up its Canadian Wine business, which accounted for 10 percent of sales in FY 2016.

The stock closed at $166.49, up 1.7 percent.