- Signs multi-year agreement with Southern Wine & Spirits of
America, Republic National Distributing Company, National Wine
& Spirits, and Johnson Brothers Liquor Company in key markets -
VICTOR, N.Y., July 23 /PRNewswire-FirstCall/ -- Constellation
Brands, Inc. (NYSE:STZNYSE:ASX:NYSE:CBR), the world's leading wine
company, announced today the signing of multi-year distribution
agreements with Southern Wine & Spirits of America, Inc.
(Southern), Republic National Distributing Company (RNDC), National
Wine & Spirits and Johnson Brothers Liquor Company, which will
result in new appointments for 19 states in the U.S. Each
distributor has the exclusive right to sell Constellation's U.S.
portfolio of wines and spirits in its market. Specifically: --
Southern will have exclusive distribution rights in nine markets,
consisting of Arizona, California, Delaware, Florida, Hawaii,
Illinois, Kentucky, New York and Pennsylvania -- Republic National
Distributing Company will have exclusive distribution rights in
eight markets, consisting of Colorado, Louisiana, Maryland,
Nebraska, Oklahoma, South Carolina, Texas and Washington D.C. --
National Wine & Spirits will have exclusive distribution rights
in Indiana. -- Johnson Brothers Liquor Company will have exclusive
distribution rights in Iowa. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040119/STZLOGO ) The
realignment of Constellation's distributor network consolidates
over half of its U.S. wine and spirits business to one distributor
per market, creating a number of benefits for Constellation, its
distributors and its customers. This fundamentally different
distribution model is structured to improve organic growth through
deeper, highly-aligned distributor relationships, fully dedicated
distributor teams and divisions focusing exclusively on
Constellation's portfolio and priorities, and improved coordination
of marketing and promotional programs that support the brands. In
addition, Constellation and its distributors will be able to offer
Constellation's full, powerful brand portfolio through a single
distributor to retailers in the 19 markets. Additionally,
Constellation will continue to work with and support its
distributors in the remaining markets around the country. "This is
a new beginning for our U.S. business and an important moment in
Constellation's history. It represents the culmination of an
18-month transformation within the U.S., during which we created an
incredibly powerful portfolio of premium, consumer-preferred wine
and spirits brands and now have carefully selected distributors for
our next wave of growth. Our new go-to-market strategy, and its
inherent emphasis on driving organic growth in a growing category,
is the natural next step for us and our distributors," said Rob
Sands, president and chief executive officer of Constellation
Brands. "Southern Wine & Spirits, RNDC, National Wine &
Spirits, and Johnson Brothers Liquor Company have been and will
continue to be an integral part to Constellation's success for many
years to come." Commenting on Southern's expanded relationship with
Constellation, Wayne Chaplin, president and chief operating officer
of Southern, said, "We are extremely excited to be named
Constellation Brands' exclusive distributor across nine state
markets. Southern is proud and honored that Constellation has
entrusted us to steward and grow their leading portfolio of wine
and spirits brands across all sales channels. As the leading U.S.
wine and spirits distributor, Southern will apply its best-in-class
sales and operations capabilities to support the growth and
development of Constellation's business in open markets and control
state jurisdictions alike." Constellation Brands' largest operating
company, Constellation Wines U.S. (CWUS), recently reorganized into
a single sales and marketing structure to align with this new
go-to-market strategy. The CWUS portfolio includes iconic leading
brands such as Robert Mondavi Winery, Clos du Bois, Blackstone,
Woodbridge by Robert Mondavi, Arbor Mist, Estancia, Ravenswood, Kim
Crawford, Toasted Head, Black Box, Black Velvet Canadian Whisky and
SVEDKA Vodka. "Given the way our portfolio has grown into a
collection of some of the most sought-after brands of premium wines
and selected spirits, our recent organizational change was a
logical next step. And now, we are changing how we bring this
portfolio to market in a more effective and efficient way that will
enable us to better establish priorities in the marketplace," said
Jose Fernandez, chief executive officer of Constellation Wines
North America. "The opportunity to be Constellation's preferred
distributor and broker in eight markets consisting of Texas,
Colorado, South Carolina, Louisiana, Maryland, Nebraska, Oklahoma
and the District of Columbia represents a major leap forward for
us. Building upon an already strong relationship across the U.S.,
this long-term agreement further aligns our priorities, incentives,
and commitment to bringing these dynamic brands to market," said
Tom Cole, RNDC president. About Constellation Brands Constellation
Brands is the world's leading wine company, with a broad portfolio
of widely admired premium brands across the wine, beer and spirits
categories. Our company achieves success through an unmatched
knowledge of wine consumers paired with storied brands that suit
their varied lives and tastes. Our portfolio of brands include
Robert Mondavi, Hardys, Clos du Bois, Blackstone, Banrock Station,
Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford,
Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.
Constellation Brands (NYSE:STZNYSE:andNYSE:STZ.B)(ASX:CBR) is an
S&P 500 Index and Fortune 1000 company with more than 100 total
brands in our portfolio, sales in about 150 countries and
operations in approximately 50 facilities. The company believes
that industry leadership involves a commitment to our brands, to
the trade, to the land, to investors and to the different people
around the world who turn to our products when celebrating big
moments or enjoying quiet ones. We express this commitment through
our vision: to elevate life with every glass raised. To learn more
about Constellation Brands and its product portfolio visit the
company's web site at http://www.cbrands.com/. About Southern Wine
& Spirits of America Southern Wine & Spirits of America,
Inc. is the nation's largest wine and spirits distributor, with
current operations in 29 states. The multi-state distributor
currently operates in: Alabama, Arizona, California, Colorado,
Delaware, Florida, Kentucky, Hawaii, Illinois, Maine, Mississippi,
New Hampshire, Nevada, New Mexico, New York, North Carolina, Ohio,
Pennsylvania, South Carolina, Vermont, Virginia and West Virginia
-- as well as the additional seven states of Alaska, Washington,
Oregon, Idaho, Montana, Wyoming and Utah through the
Southern-Odom/Spirits West partnership. In addition, Southern has
announced a pending strategic arrangement with Texas-based,
Glazer's Family of Companies. On a national basis, Southern Wine
& Spirits of America, Inc. employs more than 10,000 team
members. For more information contact:
http://www.southernwine.com/. About Republic National Distributing
Company RNDC is the second largest distributor of premium wine and
spirits in the United States with operations in Arizona, Alabama,
Colorado, District of Columbia, Florida, Kentucky, Louisiana,
Maryland, Mississippi, Nebraska, North Carolina, North Dakota,
Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia, and
West Virginia. RNDC employs more than 6,000 individuals nationwide.
For more information contact: http://www.rndc-usa.com/.
Forward-Looking Statements This news release contains
forward-looking statements. These statements may relate to
Constellation's business strategy, future operations, prospects,
plans and objectives of management, as well as information
concerning expected actions of third parties. All forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those set forth in or implied by
the forward-looking statements. In addition to risks associated
with ordinary business operations, the forward-looking statements
contained in this news release are subject to other risks and
uncertainties, including: -- implementation of consolidation
activities and actual U.S. distributor transition experience; and
-- other factors and uncertainties disclosed from time to time in
the company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the fiscal year ended
Feb. 28, 2009, which could cause actual future performance to
differ from current expectations.
http://www.newscom.com/cgi-bin/prnh/20040119/STZLOGO
http://photoarchive.ap.org/ DATASOURCE: Constellation Brands, Inc.
CONTACT: Media: Angie Blackwell, +1-585-678-7141, or Cheryl Gossin,
+1-585-678-7191, or (CWUS) Nora Feeley, +1-415-912-3752, or
Investor Relations: Patty Yahn-Urlaub, +1-585-678-7483, or Bob
Czudak, +1-585-678-7170 Web Site: http://www.cbrands.com/
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