Conditions on E. & J. Gallo Winery’s Acquisition of Assets from Constellation Brands, Inc.

wineImage by Jill Wellington

WASHINGTON, D.C. — Following a public comment period, the Federal Trade Commission has approved a final order settling charges that E. & J. Gallo Winery’s $1.7 billion acquisition of assets from competitor Constellation Brands, Inc. would violate federal antitrust law.

According to the complaint, which was first announced in December 2020, the proposed acquisition would likely eliminate head-to-head competition between Gallo and Constellation, and substantially lessen competition in the United States for six types of wine and spirits products: entry-level on-premise sparkling wine, low-priced sparkling wine, low-priced brandy, low-priced port, low-priced sherry, and high color concentrates (or HCCs).

The final order requires Gallo to divest several product lines and remove certain others from its asset purchase agreement with Constellation.

The Commission vote to approve the final order was 4-0.

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