Decision reinforces Constellation’s commitment to its consumer-obsessed strategy and winning in high-end segments across growing channels
SAN FRANCISCO, March 1, 2021 – Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today a future-focused evolution of its domestic wine and spirits distributor network to accelerate its business strategy and drive long-term value creation for the market. As part of this decision, Constellation has awarded Southern Glazer’s Wine & Spirits distribution responsibilities across approximately 70% of its wine and spirits brand portfolio in the United States, effective April 1, 2021.
This move aligns with Constellation’s wine and spirits vision to be a bold and innovative, high-end portfolio of distinctive brands and products that deliver exceptional consumer experiences. The expanded relationship reinforces Constellation’s commitment to leading the category in high-growth consumer segments and building a winning omnichannel brand portfolio.
“Achieving a consumer-focused route to market is essential to achieving our objective to out-pace, out-grow and out-execute the category in channels where consumers are choosing to engage,” said Robert Hanson, executive vice president and president - wine and spirits division, Constellation Brands. “Southern Glazer’s is a proven brand builder with a strong national footprint, a digital commerce innovator and a standout leader in the luxury category. We share a future-focused mindset and strategic orientation that we are confident will enable us to drive our consumer-first agenda. Furthermore, SGWS shares in our commitment to creating diversity, equity and inclusion within our organizations, in the communities we serve, and across our industry. We look forward to working with them to create positive change while driving growth for many years to come.”
“We are not only fully aligned with Constellation Brands’ strategy to accelerate growth in high-end wine and spirits categories, but also in our efforts to drive greater diversity in the industry,” said Wayne E. Chaplin, Chief Executive Officer, Southern Glazer’s Wine & Spirits. “Our like-minded cultures and joint commitment to building brands along with communities positions us to achieve great things in 2021 and beyond.”
Constellation launched its wine and spirits business transformation in 2019 and has evolved its portfolio into a focused set of higher-end, broad-shouldered brands aligned with consumer preferences. The portfolio continues to outpace high-end wine and spirits segments, primarily driven by its Power Brands at the greater than $11 price point including Kim Crawford, Meiomi, The Prisoner Wine Company and High West. The company began its Digital Transformation in 2020 and aspires to be the strongest direct-to-consumer and digital commerce business in the category. Constellation is leading the category in 3-tier e-commerce, with its wine Power Brands outpacing the market +35% pts in L12W. The company continues to pursue the long-term consumer premiumization trend and is committed to enhancing its leadership in fine wine and craft spirits segments where consumer growth is occurring.
Terms of the agreement were not disclosed.
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. 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 any contemplated timetable. 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.
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 other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 29, 2020, which could cause actual future performance to differ from current expectations.
ABOUT CONSTELLATION BRANDS
At Constellation Brands (NYSE: STZ and STZ.B), our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.
Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and our high-quality premium wine and spirits brands, including the Robert Mondavi Brand Family, Kim Crawford, Meiomi, The Prisoner Brand Family, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey.
But we won’t stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering what’s Worth Reaching For.
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