Constellation Tightens The Belt

Written by Ian Robertson on 10th August 2008

Constellation, the worldwide conglomerate that owns Hardy's Wines, has announced that it plans to simplify its business model through a sale of some of its assets.

The statement released August 6th states - "The initiative announced today involves the planned sale of three of 10 production facilities, in addition to the sale of more than 20 vineyard properties; consolidation of bottling operations; portfolio streamlining and rationalization of more than 30 percent of the company’s Australian stock keeping units (SKUs). The company’s Australian employment will be impacted by more than 20 percent, or 350 positions, primarily associated with assets expected to be sold."

At this stage it is unclear axactly which assets are under the microscope, however it named operations/vineyards in McLaren Vale, Clare Valley, Padthaway and Mt Barker.

It appears the company is attempting to maintain most of the current brands.