Spirits

Barton Brands, Constellation’s spirits division, is the leading producer in the American value market, and has a growing presence in the premium sector. In fiscal 2006, sales increased more than four percent.

Consumers adopting the fashionable “cocktail culture” respond very favorably to the exciting flavors, concepts, packaging, positioning, convenience and flair of new and recently introduced Constellation premium spirits. While the majority of our business lies within the value segment, Constellation’s mission is to expand its mid-premium and premium spirits portfolio by targeting its spirits investments at this sector because that’s where the industry is experiencing significant true growth.

Constellation spirits’ close-to-the-market strategy uncovers strategic export opportunities ripe for harvesting. Black Velvet has more than doubled its volume in Europe, spurred in part by the success of Black Velvet Reserve. Leveraging Constellation’s routes to market, the spirits group is exporting Effen Vodka to the U.K., and expanding the brand’s presence in Australia, where it will be sold by a leading grocery chain. Constellation applies this strategy to additional geographic expansion of a wide range of premium spirits brands.

Harvest opportunities for Constellation distilled spirits will continue to focus on further positioning of the portfolio within the mid-premium and premium sector attractive to higher income consumers, while maintaining strength, vitality, and a solid base of revenue within our value segment.