Constellation Brands is reportedly planning to divest any of its wine brands that currently sell for less than $11 a bottle.

Constellation Brands CFO David Klein announced the plans during the food and consumer products event Consumer Analyst Group of New York (CAGNY) in Boca Raton, Florida, US.

Klein was quoted by Reuters as saying: “Everything that’s not a power brand, you can assume that we’re either going to sell it, discontinue it or milk it very quickly over the next year or so.”

Last October, Reuters reported that Constellation was planning to offload certain wine brands in the US in a transaction that could be worth more than $3bn.

Constellation Brands is also in the process of optimising its wine and spirits business to increase growth rates and operating margins.

“Everything that’s not a power brand, you can assume that we’re either going to sell it, discontinue it or milk it very quickly over the next year or so.”

The company expects to deliver at least $4.5bn in returns through dividends and shareholder buyback over the next three years.

Constellation Brands president and COO Bill Newlands will succeed Rob Sands as CEO on 1 March this year.

According to Newlands, the Woodbridge by Robert Mondavi may not be sold, even though it sells for under $11, as it is is the company’s largest-selling wine brand.

Constellation Brands is an international producer and marketer of beer, wine and spirits with operations in the US, Mexico, New Zealand, Italy and Canada.

Earlier this month, Constellation Brands has acquired a minority stake in the New York-based craft spirits maker Black Button Distilling.

The investment was made through Constellation’s venture capital group.