Constellation Brands Inc : Constellation Brands and Crown Imports File Legal
Motion to Defend Their Interests in the U.S. Department of Justice Action
Against AB InBev and Grupo Modelo
VICTOR, N.Y., Feb. 8, 2013 - Constellation Brands, Inc. (NYSE: STZ and STZ.B)
and Crown Imports (Crown) filed a Motion to Intervene in U.S. District Court
for the District of Columbia today to ensure the companies interests are
represented as part of the U.S. Department of Justice's (DOJ) complaint
against the proposed Anheuser-Busch InBev (AB InBev) acquisition of Grupo
Modelo (Modelo). Constellation has a separate proposed transaction with AB
InBev to fully acquire Crown, currently a 50/50 joint venture with Modelo.
Constellation and Crown were not named as part of the Jan. 31, 2013 DOJ
complaint; however, the complaint directly impacts both companies. This motion
will seek to permit Constellation and Crown to have direct access to the legal
As part of the motion to intervene, Constellation continues to affirm a number
of key points, including:
*The transactions are good for beer consumers as Crown will be a stronger
competitor in the U.S. The proposed transactions will enhance Crown's
status as an independent and competitive entity and will strengthen
Crown's position as a growing competitor to AB InBev in the U.S. beer
market. Crown will be 100 percent owned by Constellation and will have
complete, autonomous control as the brand owner with respect to its
distribution, marketing, promotion and pricing of the Modelo brands in the
U.S. AB InBev will not be selling Corona or the Modelo brands in the
U.S., and will have no influence over Crown.
*The transactions will improve competition in the U.S. beer industry.
Crown is the third largest beer company in the U.S. with a strong
portfolio of well-known brands. Crown is guaranteed supply of a certain
number of new products each year upon request. The transactions do not
increase concentration in the U.S. beer market. Crown, which prices,
markets and distributes Corona and the Modelo portfolio in the U.S., will
be completely independent after the transactions. Thus, competition will
increase as AB InBev will have no economic interest in Crown's business.
*Constellation Brands and Crown will compete in the future even more
effectively due to more favorable supply terms than previously existed.
Through a revised supply agreement, Crown is protected from interference
from its supplier and the cost of beer purchased is based on a formula
that adjusts annually at a rate below the U.S. Consumer Price Index.
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 more than 4,400 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, Kim Crawford, Inniskillin, Franciscan
Estate, Mark West, Ruffino, Simi, Estancia, 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 40 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
Angela Howland Blackwell: 585-678-7141
Cheryl Gossin: 585-678-7191
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
Statement of Points and Authorities in Support of Motion to Intervene
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Constellation Brands Inc via Thomson Reuters ONE
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