SAN FRANCISCO (Dow Jones) -- Constellation Brands Inc. (STZB) Thursday evening said it is reorganizing its global wine operation as the wines unit chief retires and the company looks to cut costs.

Stephen Millar, chief executive of Constellation Wines, is retiring Feb. 28, and his position won't be filled. With Millar's retirement, Constellation (STZ) said the timing was right for global wine reorganization, a move that the company sees incurring $55 million in pretax charges.

The Fairport, N.Y.-based alcoholic beverage producer and marketer expects $24 million of the charges to be recorded in the fourth quarter of fiscal 2006, and the rest during fiscal 2007.

Constellation noted that it is "streamlining" United Kingdom operations, primarily through personnel reductions. Also, within its individual U.S. wine companies, certain production processes will be integrated to reduce costs, Constellation said.

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