Constellation Brands Repositions Wine and Spirits Business to Accelerate Growth and Increase Shareholder Value
April 03 2019 - 4:35PM
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading
beverage alcohol company, announced today that it has signed an
agreement with E. & J. Gallo Winery to divest approximately 30
brands from its wine and spirits portfolio principally priced at
$11 retail and below, and related facilities located in California,
New York and Washington for $1.7 billion, subject to closing
adjustments. The transaction is also subject to the satisfaction of
certain closing conditions, including the receipt of regulatory
approval, and is expected to close at the end of the company's
first quarter of fiscal 2020.
“One of the hallmarks of our success over the
years has been our ability to evolve and stay on the forefront of
emerging consumer trends,” said Bill Newlands, Constellation
Brands president and chief executive officer. “This decision will
help enhance organizational focus on a more premium set of wine and
spirits brands that better position our company to drive
accelerated growth and shareholder value. In turn, Gallo is
acquiring a collection of great brands that complement their
operational model and business strategy to provide quality products
to consumers at every price point.”
Constellation’s remaining wine and spirits
portfolio represents a collection of powerhouse brands such as the
iconic Robert Mondavi brand family; The Prisoner Wine Company brand
family; Kim Crawford, the #1 sauvignon blanc in the U.S. market;
Ruffino, a leading brand family of Italian wines; Meiomi, the #1
pinot noir in the U.S.; and SVEDKA Vodka, the #1 imported vodka in
the U.S. The company’s portfolio also includes a collection of
highly-rated, high-end brands such as SIMI, Schrader Cellars and
Mount Veeder Winery wine brands, and High West Whiskey and Casa
Noble Tequila, as well as new premium wine innovations such as
Cooper & Thief and Spoken Barrel.
Additional commentary and financial information
related to the transaction will be discussed during Constellation
Brands' Fiscal Year and Fourth Quarter Results conference call,
Thursday, April 4, 2019, at 10:30 a.m. EDT. The conference
call can be accessed by dialing +1-877-673-1771 and entering
conference identification number 4660599, beginning at 10:20 a.m.
EDT. A live, listen-only webcast of the conference call will be
available on the company’s website, www.cbrands.com, under the
Investors/Events & Presentations section.
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, premium 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, high-end brands such as SIMI
and Mount Veeder Winery wine brands, High West Whiskey and Casa
Noble Tequila, as well as new premium 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. These
statements may relate to 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, 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
between Constellation Brands and E. & J. Gallo is subject to
the satisfaction of certain closing conditions, including the
receipt of required regulatory approval. There can be no assurance
that any transaction between Constellation Brands and E. & J.
Gallo will occur or will occur on the terms and timetable
contemplated hereby.
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 by the expected completion date and on the expected
terms and conditions; the accuracy of all projections; 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 February 28, 2018, as supplemented by the company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended
August 31, 2018, which could cause actual future performance
to differ from current expectations.
MEDIA CONTACTS |
|
INVESTOR RELATIONS CONTACTS |
Mike McGrew
773-251-4934 |
|
michael.mcgrew@cbrands.com |
Patty Yahn-Urlaub
585-678-7483 |
|
patty.yahn-urlaub@cbrands.com |
Alex Wagner
415-912-3788 |
|
alex.wagner@cbrands.com |
Bob Czudak
585-678-7170 |
|
bob.czudak@cbrands.com |
|
|
Tom Conaway
585-678-7503 |
|
thomas.conaway@cbrands.com |
A downloadable PDF copy of this news release enhanced with
multimedia links can be found
here: http://ml.globenewswire.com/Resource/Download/4056d358-aa26-4909-abd7-3fcd691f212a
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