~Builds on go-to-market initiative launched in 2009 to drive
better efficiencies and effectiveness~
VICTOR, N.Y., May 18, 2012 - Constellation Brands, Inc., (NYSE: STZ), the world's leading premium wine company, announced today that it is nearing completion of the second phase of its distribution transition with the signing of multi-year agreements with Republic National Distributing Company (RNDC), Young's Market Company, Johnson Brothers and Horizon Beverage Company. The agreements further Constellation's continued strategy to simplify its distribution and broker network and go-to-market model. The initiative, which began in 2009, will now represent nearly 70 percent of the company's total U.S. wine and spirits business.
"During the last two years, we have seen success in the initially consolidated markets where they have outperformed the non-consolidated markets in depletion trends," said Rob Sands, president and chief executive officer, Constellation Brands. "The signing of these new agreements represents our continued focus on creating efficiencies and developing consolidated points of contact for our distributors and brokers to ensure our products are in the right place and receive the attention they deserve. We are very pleased to continue to drive our product portfolio into the marketplace in an efficient manner and expect to grow the business through these expanded relationships."
The firms were selected based on pre-established criteria and have been appointed as follows:
RNDC will serve as the exclusive distributor for wine and spirits brands in North and South Dakota.
Young's Market Company will serve as the exclusive broker for wine and spirits brands in Utah and Wyoming; exclusive broker for spirits brands in Oregon, Idaho and Montana; and exclusive distributor for spirits brands in Washington, while continuing to serve as the exclusive distributor of wine brands in the state.
Johnson Brothers will serve as the exclusive distributor for wine brands in Minnesota and continues to be a wholesaler for the company's spirits brands in the state.
Horizon Beverage Company will serve as the exclusive broker for wine and spirits brands in New Hampshire; exclusive broker for spirits brands in Maine and Vermont; exclusive distributor for wine and spirits brands in Rhode Island; and the only full-line distributor for Constellation's brands in Massachusetts.
The consolidated U.S. distribution model is structured to drive profitable, organic growth through deeper, highly-aligned distributor and broker relationships with dedicated focus on Constellation's portfolio and improved coordination of marketing and promotional programs that support the brands.
About Constellation Brands
Constellation Brands is the world's leading premium wine company that achieves success through an unmatched knowledge of wine consumers, storied brands that suit varied lives and tastes, and talented employees worldwide. With a broad portfolio of widely admired premium products across the wine, beer and spirits categories, Constellation's brand portfolio includes Robert Mondavi, Clos du Bois, Blackstone, Arbor Mist, Estancia, Ravenswood, Ruffino, Jackson-Triggs, Inniskillin, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.
Constellation Brands (NYSE: STZ and STZ.B) is a S&P 500 Index and Fortune 1000® company with more than 100 brands in our portfolio, sales in about 100 countries and operations in approximately 30 facilities. The company believes that industry leadership involves a commitment to our brands, to the trade, to the land, to investors and to 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, visit the company's website at www.cbrands.com.
This news release contains forward-looking statements. These statements may relate to Constellation Brands' 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. 29, 2012, which could cause actual future performance to differ from current expectations.
|Angie Blackwell - 585-678-7141
Cheryl Gossin - 585-678-7191
|Patty Yahn-Urlaub - 585-678-7483
Bob Czudak - 585-678-7170