Constellation Brands Evolves Spirits Portfolio
August 12 2019 - 4:30PM
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading
beverage alcohol company, announced today that it has signed an
agreement with Heaven Hill Brands to divest Black Velvet Canadian
Whisky and the brand's associated production facility in
Lethbridge, Alberta, Canada, along with a subset of Canadian whisky
brands produced at that facility. The company expects to receive
cash proceeds of approximately $266 million USD, subject to closing
adjustments. This transaction is subject to regulatory approvals
and is expected to close in the second half of calendar 2019.
“We are relentlessly focused on the consumer and
building a portfolio of brands consumers love today, while pushing
beyond to meet their evolving needs well into the future," said
Bill Newlands, Constellation Brands president and chief executive
officer. "This decision aligns with our consumer-led premiumization
strategy to deliver accelerated growth and shareholder value as we
continue to focus our wine and spirits portfolio on higher-end,
fast-growing brands. For Heaven Hill, Black Velvet is a historic,
well-known, and high-volume brand that complements their broad
distilled spirits portfolio and aligns with their business
strategy.”
Constellation’s powerhouse portfolio of spirits
brands include SVEDKA Vodka, the #1 imported vodka in the U.S.;
High West Whiskey, Casa Noble Tequila, Mi CAMPO Tequila, and
Nelson’s Green Brier. Constellation's ventures capital group has
made minority investments in higher-end, distinctive spirits brands
such as Austin Cocktails, Bardstown Bourbon Company, El Silencio,
The Real McCoy, and its most recent investment in Montanya
Distillers.
The net sales for the brands included in the
transaction totaled $67 million USD during Constellation’s fiscal
year 2019, and the purchase price represents a multiple of gross
profit after marketing in the range of eight to nine times.
About Constellation
BrandsConstellation Brands (NYSE: STZ and STZ.B), a
Fortune 500® company, is a leading international producer and
marketer of beer, wine and spirits with operations in the U.S.,
Mexico, New Zealand, Italy and Canada. Constellation is the No. 3
beer company in the U.S. with high-end, iconic imported brands such
as the Corona and Modelo brand families and Pacifico. Its
high-quality, wine and spirits brands include the Robert Mondavi
and The Prisoner Wine Company brand families, Kim Crawford,
Ruffino, Meiomi and SVEDKA Vodka. The company’s portfolio also
includes a collection of highly-rated wine brands such as SIMI and
Mount Veeder Winery, spirits brands High West Whiskey and Casa
Noble Tequila, as well as new wine innovations such as Cooper &
Thief and Spoken Barrel.
Based in Victor, N.Y., the company believes that industry
leadership involves a commitment to brand building, our trade
partners, the environment, our investors and to consumers around
the world who choose our products when celebrating big moments or
enjoying quiet ones. Since its founding in 1945, Constellation’s
ability to see, meet and stay ahead of shifting consumer
preferences and trends across total beverage alcohol has fueled our
success and made us the No. 1 growth contributor in beverage
alcohol in the U.S.
To learn more, follow us on Twitter @cbrands and visit
www.cbrands.com.
Forward-Looking StatementsThis news release
contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements. The
word “expect” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Those statements may
relate to Constellation Brands' business strategy, future
operations, prospects, plans and objectives of management, and
expected cash proceeds, 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, such
forward-looking statements.
The forward-looking statements are based on management's current
expectations and should not be construed in any manner as a
guarantee that such results will in fact occur or will occur on the
timetable contemplated hereby. All forward-looking statements speak
only as of the date of this news release and Constellation Brands
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The transaction with Heaven Hill Brands is subject to
the satisfaction of certain closing conditions, including receipt
of regulatory approvals. There can be no assurance the transaction
between Constellation Brands and Heaven Hill Brands will occur or
will occur on the contemplated terms or timetable.
In addition to risks and uncertainties associated with ordinary
business operations, the forward-looking statements contained in
this news release are subject to other risks and uncertainties,
including completion of the announced transaction; the accuracy of
all projections; and other factors and uncertainties disclosed from
time-to-time in Constellation Brands, Inc.'s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended Feb. 28, 2019 and its
Quarterly Report on Form 10-Q for the fiscal quarter ended
May 31, 2019, which could cause actual future performance to
differ from current expectations.
A downloadable PDF copy of this news release can be found
here: http://ml.globenewswire.com/Resource/Download/23288f72-b3e5-4eae-b5b1-8d2f3a02c000
MEDIA CONTACTS |
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INVESTOR RELATIONS CONTACTS |
Mike McGrew 773-251-4934 |
michael.mcgrew@cbrands.com |
Patty Yahn-Urlaub 585-678-7483 |
patty.yahn-urlaub@cbrands.com |
Amy Martin 585-678-7141 |
amy.martin@cbrands.com |
Bob Czudak 585-678-7170 |
bob.czudak@cbrands.com |
Alex Wagner 415-912-3788 |
alex.wagner@cbrands.com |
Tom Conaway 585-678-7503 |
thomas.conaway@cbrands.com |
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