Constellation Brands, Inc. operates as a beverage alcohol company. The company’s segments include Beer and Wine and Spirits. Beer This segment has the exclusive right to import, market, and sell Mexican Beer Brands in all 50 states of the U.S., including Corona Extra; Corona Light; Modelo Especial; Pacifico; Negra Modelo; and Victoria. During 2014, the company introduced Modelo Especial Chelada, a blend of Modelo Especial with flavors of tomato, salt and lime, to further capitalize on the strength of this brand. Wine and Spirits This segment produces and markets premium wine. The company sells various wine brands across all categories – table wine, sparkling wine and dessert wine – and across all price points – popular, premium, super-premium and fine wine. Its portfolio of super-premium and fine wines is supported by vineyard holdings in the U.S., Canada, New Zealand and Italy. The company’s wine produced in the U.S. is primarily marketed domestically and in Canada. Wine produced in Canada is primarily marketed domestically. Wine produced in New Zealand and Italy is primarily marketed in the U.S. and Canada. In addition, the company exports its wine products to other major world markets. In company’s spirits business, SVEDKA Vodka is imported from Sweden. Black Velvet Canadian Whisky is a Canadian whisky brand in the U.S. In the U.S., the company sells 16 table wine brands. The company’s U.S. Focus Brands include: Arbor Mist, Black Box, Blackstone, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Mount Veeder, Nobilo, Ravenswood, Rex Goliath, Robert Mondavi, Ruffino, Simi, Toasted Head, Wild Horse, Black Velvet Canadian Whisky, and Svedka Vodka. Strategy The key elements of the company’s strategy include leveraging its existing portfolio of leading brands; developing new products, new packaging and line extensions; strengthening relationships with wholesalers and retailers; expanding distribution of its product portfolio; enhancing and expanding production capabilities; and maximizing asset utilization. Marketing and Distribution In North America, the company’s products are primarily distributed by wholesale distributors, with separate distribution networks utilized for its imported beer and wine and spirits portfolios, as well as state and provincial alcohol beverage control agencies. Competition Beer: The company’s principal competitors include Anheuser-Busch InBev, MillerCoors, Heineken, and Boston Beer. Wine U.S.: The company’s principal competitors include E&J Gallo Winery, The Wine Group, Trinchero, Treasury Wine Estates, Ste. Michelle Wine Estates, Deutsch Family Wine & Spirits, and Jackson Family Wines. Canada: The company’s principal competitors include Andrew Peller, Treasury Wine Estates, E&J Gallo Winery, Pernod Ricard, Kruger Wines, and Spirits. Spirits: The company’s principal competitors include Diageo, Beam Suntory, Brown-Forman, Sazerac, and Pernod Ricard. Seasonality In response to wholesaler and retailer demand, which precedes consumer purchases, the company’s imported beer sales are typically highest during the first and second quarters of its fiscal year (February 28, 2015), which correspond to the Spring and Summer periods in the U.S. The company’s wine and spirits sales are typically highest during the third quarter of its fiscal year, primarily due to seasonal holiday buying. History Constellation Brands, Inc. was founded in 1945. The company, a Delaware corporation, was incorporated in 1972.
constellation brands inc-a
207 High Point Drive
Victor, NY 14564
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