VICTOR, New York (AP) -- Constellation Brands has broken off talks to combine part of its Australian and British wine operations with Australian Vintage.
The world's biggest winemaker by volume says the decision to end negotiations with its smaller rival was a mutual one.
Based in upstate New York, Constellation Brands says it will continue to focus on paring costs and finding ways to make its British and Australian businesses more efficient.
A wine glut, thin profits and a plunge in wine sales in Britain and Australia in late 2008 led the company to restructure its Australian business last summer. The maker of Australian wine brands such as Hardys and Banrock Station trimmed its work force and sold wineries, vineyards and product lines.
Copyright 2010 The AP.