Constellation Brands

From Wikipedia, the free encyclopedia

Constellation Brands, Inc.

Type	Public NYSE: STZ
Founded	1945
Headquarters	Fairport, New York, USA
Key people	Jose Fernandez, President & CEO U.S. Richard Sands, Chairman & CEO Robert Sands, President & COO Alexander L. Berk, CEO of Constellation Beers & Spirits
Industry	Beverages
Products	Wine: Dining & Dessert Beer Spirits
Revenue	▲$5.2 Billion USD (2007)
Net income	▲$332 Million USD (2007)
Employees	7,700 (2005)
Website	www.cbrands.com

Constellation Brands, Inc., headquartered in Fairport, New York, is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, imported beer and spirits categories. Constellation is the largest wine company in the world; the largest multi-category supplier of beverage alcohol in the United States; a leading producer and exporter of wine from Australia and New Zealand; and both a major producer and independent drinks wholesaler in the United Kingdom.

Activities

Constellation was founded in 1945 as a wine manufacturer and currently has over 200 beverage alcohol brands over two operating divisions - Constellation Wines and Constellation Beers & Spirits.

The company is the world's largest wine producer by volume. Operations in the United States are organized under at least three semi-independent entities, Constellation Wines (previously Canandaigua Wine), Pacific Wine Partners and Icon Estates (its luxury division, previously Franciscan Estates). Total production was 57 million cases in 2006, making it the second largest in the United States.^[1] Among its U.S. brands are Franciscan Oakville Estate, Simi Winery, Ravenswood Winery, and Arbor Mist. In November, 2007 Constellation announced a purchase of Fortune Brands' wine operations for $885 million, a transaction that will add 1,500 acres (6.1 km²) of vineyards, several major brands such as Clos du Bois, and 2.6 million cases per year of "super-premium" class wine production.^[2] However, in January 2008, Constellation announced that it will sell the Almaden Vineyards, Inglenook Winery and the Paul Masson winery in Madera, California assets it purchased from Fortune Brands to The Wine Group for $134 million in cash.^[3] The company also produces, markets and sells a broad portfolio of wines throughout the world. It operates the leading independent drinks wholesaler and a cider business in the United Kingdom, and produces bulk wine and other related products. Portfolio companies include (Hardys & Renmano) in Australia, Nobilo in New Zealand, Veramonte in Chile, and Marcus James in Argentina.

Constellation Beers & Spirits is one of the largest producers and marketers of distilled spirits in the United States. Some of this division's leading brands include Corona Extra and Corona Light, Modelo Especial, Tsingtao, St. Pauli Girl, Black Velvet, Fleischmann's, Chi-Chi's and Paul Masson Grande Amber Brandy.

As of 2005 Constellation operated over 43 production facilities, had approximately 7,500 employees and sold its products in more than 60 countries in North America, South America, Europe and Australia. 2006 income was approximately $5.3 billion.^[2] In 2001 Constellation acquired Corus Brands, in 2002-2003 Constellation acquired BRL Hardy from Australia, in 2004 Constellation acquired Mondavi USA, and 200-2006, Constellation announced it was buying Vincor International, a Canadian winemaker, for $1.44 Billion USD.

In November, 2007 Constellation announced a purchase of Fortune Brands' wine operations for $885 million, a transaction that will add 1,500 acres (6.1 km²) of vineyards, several major brands such as Clos du Bois, and 2.6 million cases per year of "super-premium" class wine production.^[2] However, in January 2008, Constellation announced that it will sell the Almaden Vineyards, Inglenook Winery and the Paul Masson winery in Madera, California assets it purchased from Fortune Brands to The Wine Group for $134 million in cash.^[4]