Constellation Brands

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Constellation Brands, Inc.
Type Public
Traded as NYSESTZ
S&P 500 Component
Industry Beverages
Predecessor(s) Canandaigua Wine Company
Founded 1945 (1945)
Founder(s) Marvin L. Sands
Headquarters Victor, New York
Area served North America, Europe, Australia, New Zealand
Key people Robert Sands, President & CEO
Richard Sands, Chairman of the Board
Products Wine, beer, and spirits
Revenue Decrease US$4097 million (2011)[1]
Operating income Increase US$503 million (2011)[1]
Net income Increase US$560 million (2011)[1]
Total assets Decrease US$7168 million (2011)[1]
Total equity Decrease US$2552 million (2011)[1]
Employees Decrease 4300 (2011)[1]
Divisions Constellation Wines North America, Constellation Wines Australia and Europe, Constellation Wines New Zealand, Crown Imports
Website www.cbrands.com

Constellation Brands, Inc., of Victor, New York, is a publicly traded drinks company with brands in wine, beer and spirits.

History and description[edit]

The company was established in 1945 by Marvin Sands in the Finger Lakes region of New York as Canandaigua Industries Company. Since that time, the company has grown through internal expansion and by acquisitions across all segments of the beverage alcohol industry.

Constellation Brands is the largest wine producer in the world.[2] It had sales of over $3.77 billion in fiscal year 2008. It operates about 40 production facilities, employs some 4,300, and markets its products worldwide.

The company owns more than 100 brands in wine, beer and spirits. Wine brands include Robert Mondavi, Clos du Bois, Franciscan Estates, Ravenswood, Blackstone, Nobilo, Kim Crawford, Inniskillin, Jackson-Triggs and Arbor Mist. Beer brands include Corona, Modelo Especial and Negra Modelo, Pacífico, and Tsingtao. Spirits brands include Black Velvet Canadian Whisky, Svedka Vodka and Paul Masson Grande Amber Brandy.

Wine fraud[edit]

In 2010, a French court in Carcassonne, France, convicted 12 wine traders and producers for selling fake Pinot noir wine to Constellation in a scheme that lasted from January 2006 to March 2008. Constellation later faced a class action lawsuit because it "should have known" that the wine was fake.[3][4]

Acquisitions[edit]

Constellation Brands moved its headquarters to a 120,000 square feet (11,000 m2) building on 11 acres (4.5 ha) in Victor, New York in 2009

Constellation Brands has expanded by acquiring other drinks companies.

In 1998 it acquired Matthew Clark plc in the United Kingdom, and after selling off its cider business, the Gaymer Cider Company, sold half of the business to Punch Taverns. Recent acquisitions include BRL Hardy (Australia)[5] and Nobilo (New Zealand) in 2003; Robert Mondavi Corp. for $1 billion in 2004;[6] Vincor International, Canada's largest wine company, for $1.44 billion in 2006;[7] Spirits Marque One (owner of Svedka Vodka) in 2007;[8] and Beam Wines Estates, the wine operations of Fortune Brands (which included several major brands such as Clos du Bois) for $885 million in 2008.[9] The company later moved to a more premium wine portfolio, divesting Almaden Vineyards, Inglenook Winery, and the Paul Masson winery in Madera, California, in 2008,[10] and its value spirits portfolio in 2009.[11]

In June 2013 the company, which formerly imported Corona and other Modelo brands to the United States, acquired the US rights to those brands as a part of an anti-trust settlement permitting Modelo's acquisition by Anheuser-Busch InBev, along with a brewery in Mexico. It now produces its own versions of those products for the US, with Modelo serving all other countries.

See also[edit]

References[edit]

  1. ^ a b c d e f Constellation Brands, Incorporated (April 29, 2011), FORM 10-K for the Fiscal Year Ended February 28, 2011, Washington, D.C.: U.S. Securities and Exchange Commission, File 001-08495, film 11793905, retrieved June 30, 2011 
  2. ^ David Kesmodel (February 25, 2010). "Liquor Discounts Become Bad Habit for Spirits Makers". Wall Street Journal (New York). 
  3. ^ Jon Bonné (February 19, 2010). "Pointing Fingers in Pinotgate". San Francisco Chronicle. 
  4. ^ "Plot Thickens in 'Pinot Gate' Scandal". Food Service World. March 1, 2010. 
  5. ^ Shaw, John (January 18, 2003). "Constellation Brands Agrees to Buy Australian Winery". The New York Times. Retrieved April 24, 2009. 
  6. ^ "Mondavi to Join Constellation in $1 Billion Deal". Wine Spectator. Retrieved May 15, 2009. 
  7. ^ "Constellation To Buy Vincor for $1.09 Billion". USA Today. April 3, 2006. Retrieved May 15, 2009. 
  8. ^ "Constellation Brands to buy Svedka vodka". Reuters. February 6, 2007. Retrieved May 15, 2009. 
  9. ^ Sam Zuckerman (November 13, 2007). "Constellation Brands buys several California premium wine labels". San Francisco Chronicle. Retrieved November 13, 2007. 
  10. ^ Styles, Oliver (January 23, 2008). "Constellation sells Inglenook, Almaden and Paul Masson winery, reports 832 million dollar loss". Decanter.com. 
  11. ^ Gershberg, Michele (January 12, 2009). "Constellation Sells Value Spirits for $334 Mln". Reuters UK. Retrieved May 15, 2009. 

External links[edit]