Constellation Brands buys Prisoner Wine Company from Napa’s Huneeus Vintners for $285 million

Constellation Brands on Wednesday announced it has purchased the Prisoner Wine Company from Napa-based Huneeus Vintners for about $285 million, a move that reflects further consolidation within the premium wine industry.

Constellation Brands, the nation’s third-largest wine company, said it would purchase five fine wine brands from Huneeus led by Prisoner, a fast-growing luxury wine company. The deal, which also includes the Saldo, Cuttings, Blindfold and Thorn brands, is expected to close by the end of April.

The brands, with a price per bottle mostly ranging from $30 to $50, collectively have grown at an annual rate of 30 percent over the past three years and reached a total of 175,000 cases in 2015.

“More than ever, consumers are seeking high quality, distinctive wines and the portfolio we are acquiring from the Prisoner Wine Company delivers,” Bill Newlands, president of the wine and spirits division of Constellation Brands said in a statement. “Huneeus Vintners is known for building luxury wine brands and excels in growing gems and turning them into powerhouse brands. These wines resonate with consumers and this acquisition further strengthens our position in the fine wine segment of the category.”

The sale marks the second major recent transaction on the North Coast for Constellation Brands after it bought the Meiomi brand in July from Napa vintner Joe Wagner for $315 million. The Victor, N.Y., company is targeting the lucrative Napa and Sonoma market given the profitability in premium wines. E & J Gallo Winery of Modesto also has been very aggressive in the North Bay within the past year.

Constellation Brands owns Clos du Bois winery in Geyserville, Simi Winery in Healdsburg and Robert Mondavi Winery in Napa, as well as other beer and spirits producers.

The company on Wednesday also released its annual earnings, reporting that net sales increased by 9 percent. Its operating income grew by 18 percent in fiscal year 2016.

You can reach Staff Writer Bill Swindell at 521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.