• by Danielle Oster , May 16, 2024

Constellation Brands has agreed to buy California winery Sea Smoke.

Located in Santa Rita Hills AVA of Santa Barbara County, the winery is “one of the preeminent pinot noir producers in the world,” situated on a “highly prized estate," according to a Constellation release.

The acquisition is part of a broader, ongoing growth strategy of building out the company’s portfolio of higher-end brands in the wine and spirits category, according to a statement from Sam Glaetzer, Constellation Brands’ executive vice president and president, wine & spirits division.

Glaetzer took on leadership responsibilities for the wine and spirits division in March, succeeding Robert Hanson, who stepped down at the end of February after serving in the role since 2019.

The news follows Constellation Brands’ acquisition last June of luxury Napa Valley wine brand Domaine Curry, from Coup De Foudre Napa Valley. Domaine Curry was co-founded by Canadian-American actress Ayesha Curry and blogger and podcaster Sydel Curry-Lee -- wife and sister, respectively, of NBA star Steph Curry.

Constellation Brands also acquired a majority stake in nonalcoholic sparkling beverage brand TÖST last November.

In a recent investor earnings call about the company's fiscal year 2024 Q4, it acknowledged ongoing difficulties in the wine and spirits category, calling it something of a “reset” year.

“While we do not expect ongoing challenges in the wine and spirits category to immediately subside, particularly in the mainstream and premium price segments, we have identified several areas to improve the performance of our wine and spirits business in fiscal '25,”  including “refocusing our efforts within our premium and above brands to more consistently drive growth in our most scaled and central offerings,,,while accelerating additional tactical investments to revitalize the equity and support demand for our largest mainstream brand, Woodbridge,” Constellation President and CEO Bill Newlands said on the call.