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
(Thomson Reuters ONE) -
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 proceedings.
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 www.cbrands.com.
CONTACTS
Media
Angela Howland Blackwell: 585-678-7141
Cheryl Gossin: 585-678-7191
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
Statement of Points and Authorities in Support of Motion to Intervene:
http://hugin.info/143788/R/1676798/546708.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. 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 the information contained therein.
Source: Constellation Brands Inc via Thomson Reuters ONE
[HUG#1676798]
Unternehmensinformation / Kurzprofil:
Datum: 08.02.2013 - 20:44 Uhr
Sprache: Deutsch
News-ID 227865
Anzahl Zeichen: 5009
contact information:
Town:
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Kategorie:
Business News
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