Constellation's Share Price Bouyed By Asset Sales And US Growth

US wine producer Constellation Brands has significantly outperformed the Standard & Poor's 500 Index over the last six months (see first chart). During this period the firm engaged in significant restructuring, selling off the bulk of its UK cider and Australian and UK wine businesses. These units had been a significant drag on the wider performance of the company and despite selling these assets for a significant loss (the firm paid AUD1.85bn (US$1.85bn) for Australian wine brand BRL Hardy in 2003 only to sell an 80% stake its entire Australian and UK wine operations for AUD290mn (US$290mn) in February 2011)

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