Big US vintners scaling back

You say your life's ambition is to start a winery and spend your days strolling through vineyards, pruning here and there and, of course, tasting samples from oak barrels?

You'll want to study the business very carefully, because some big players are trimming their businesses or getting out of it.

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The Wall Street Journal reports that Brown-Forman (BF.B), best known for its Jack Daniel's whiskey, is putting its entire wine business up for sale. This includes six California wineries that make cabernet sauvignons, chardonnays and other varieties and Korbel California Champagnes.

At the same time, the Journal said Constellation Brands (STZ), the largest U.S. wine producer (yes, bigger even than Gallo) may be selling most of its non-U.S. wine operations to what the paper calls "an unknown buyer," perhaps as early as this week.

The reason both companies are in the mood to sell: The wine business has been struggling with weak sales and big price pressures.

The wine industry in the United States and Australia is vulnerable to the normal problems of agriculture: drought, rain, frost and pestilence.

It is vulnerable to chronic market gluts because so many people are attracted by the romance and what they believe is the glamour of making wine.

Brown-Forman wants to focus on the liquor business, which also includes Southern Comfort and Finlandia vodka.

Constellation wants to concentrate on high-end brands. It generates more than 90% of its revenue from moderately priced wines such as Clos du Bois and Blackstone, the Journal said.

Constellation became bigger than Gallo after it bought BRL Hardy, a big Australian winemaking company. But the business suffered from a strong Australian dollar, drought and too much supply in Britain, Australia's biggest export market.

It started to reorganize the business in 2008, selling three wineries, totaling 23 vineyards. It cut product lines and 250 jobs. 

Brown-Forman shares were up 0.9% to $70.61 Monday. The shares are up 32.3% this year. Constellation shares were off 1% to $21.92. But they're up 37.6% on the year.