Constellation Brands to Acquire Charles Smith Wines
(Thomson Reuters ONE) -
Increases prominence in fast-growing Washington State wines
VICTOR, N.Y., Oct. 17, 2016 - Constellation Brands, Inc. (NYSE: STZ and STZ.B),
a leading beverage alcohol company, today announced an agreement with Charles
Smith Wines LLC to acquire the Charles Smith Wines collection of five super and
ultra premium wines for approximately $120 million. The transaction, expected to
close in October, includes Kung Fu Girl Riesling, Velvet Devil Merlot, Boom
Boom! Syrah, Eve Chardonnay and Chateau Smith Cabernet Sauvignon. With this
acquisition, Constellation Brands will solidify its position as the second
leading supplier of Washington State wines, gaining a collection of high quality
wines that have strong consumer affinity and demand, and have shown double-digit
volume growth over the last three years.
Charles Smith started the core collection of Charles Smith Wines in 2006 with
the goal to create high quality, varietal specific wines true to the place of
origin at a price point for everyone to enjoy. These Washington State wines are
full of flavor, balanced and approachable, and have consistently garnered 90+
scores by leading industry critics. The largest wine, Kung Fu Girl, is the #2
super premium Riesling growing retail sales at 45 percent over the last year.
The wine has scored 90+ points for the past seven vintages and has been twice
named a Wine Spectator Top 100 wine. Boom Boom! Syrah is the #1 ultra premium
Syrah with IRI dollar sales growth of more than 50 percent while Velvet Devil
Merlot is the #2 super premium Washington State Merlot and is outpacing sales
growth of the leading brand in this category.*
Smith will assist Constellation Brands under a consulting agreement as winemaker
to maintain the high quality and consistency of the wines and will work with
Constellation Brands to help drive further innovation across its wine portfolio.
Wine Enthusiast named Smith, a former rock band manager, Winemaker of the Year
in 2014 and Food & Wine bestowed the same honor in 2009.
"Charles Smith is a visionary in the wine business and we are excited to welcome
him to Constellation Brands and bring these wines to a larger audience," said
Bill Newlands, president, wine and spirits division, Constellation Brands. "With
the addition of this collection, we strengthen our core wine portfolio and
augment our innovation capabilities to stay ahead of consumer trends. I am
looking forward to working with Charles and tapping into his creative genius to
fuel our wine innovation."
"I created Charles Smith Wines so that everyone could experience a great
tasting, quality wine, at an affordable price," said founder Charles Smith. "The
quality of grapes in Washington State is incredible, and I have been able to put
the best wines I can in a bottle for people to enjoy. Constellation Brands has a
proven track record of acquiring and working with brands and companies to help
them reach the next level. With Constellation Brands, we now have the
opportunity to share these wines with the world."
The wines are sourced from prime vineyards across Columbia Valley and are
produced in several custom crush facilities in Washington. Sustainable practices
are utilized in both the vineyards and in the winemaking process for all of
these wines. The following wines are not included in this deal and will continue
to be nurtured and developed by Charles Smith's company: K Vintners, Wines of
Substance, ViNO, Casa Smith, SIXTO, B. Leighton and Charles & Charles.
(*) IRI, Total US Multi-Outlet and Convenience, 52 weeks ending 9/4/16
About Constellation Brands
Constellation Brands (NYSE: STZ and STZ.B) is a leading international producer
and marketer of beer, wine and spirits with operations in the U.S., Canada,
Mexico, New Zealand and Italy. Constellation is a Fortune 500(®) company and one
of the top performing stocks in the S&P 500 Consumer Staples Index.
Constellation is the No. 3 beer company in the U.S. with high-end, iconic
imported brands such as Corona Extra, Corona Light, Modelo Especial, Modelo
Negra and Pacifico. The company's beer portfolio also includes Ballast Point,
one of the most awarded craft brewers in the U.S. In addition, Constellation is
the world's leader in premium wine, selling great brands that people love,
including Robert Mondavi, Clos du Bois, Kim Crawford, Meiomi, Mark West,
Franciscan Estate, Ruffino and Jackson-Triggs. The company's premium spirits
brands include SVEDKA Vodka and Casa Noble Tequila.
Based in Victor, N.Y., the company believes that industry leadership involves a
commitment to brand building, our trade partners, the environment, our investors
and to consumers around the world who choose our products when celebrating big
moments or enjoying quiet ones. Founded in 1945, Constellation has grown to
become a significant player in the beverage alcohol industry with more than 100
brands in its portfolio, sales in approximately 100 countries, about 40
facilities and approximately 9,000 talented employees. We express our company
vision: to elevate life with every glass raised. To learn more, visit
www.cbrands.com.
About Charles Smith
Started in Walla Walla, Washington, in the late 1990's, award-winning winemaker
Charles Smith's portfolio of wines includes Wines of Substance, ViNO, K
Vintners, SIXTO, Casa Smith, B. Leighton and one-half of Charles & Charles. In
2015, the Charles Smith footprint broadened to Seattle with the opening of Jet
City, the largest urban winery on the west coast, that has attracted tens of
thousands of visitors since its debut. Charles Smith is the only person to have
received Winemaker of the Year distinctions by both Wine Enthusiast (2014) and
Food & Wine (2009). His wines continue to receive broad recognition from
leading wine publications such as Wine Advocate, Wine Spectator, Wine Enthusiast
and Wine & Spirits with 98 scores of 95 points and above, and more than 386
scores of 90 points and above. For more information visit
http://www.kvintners.com/.
Forward-Looking Statements
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. 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.
The proposed transaction with Charles Smith Wines LLC is subject to certain
closing conditions, including receipt of regulatory approval, and there can be
no assurance the transaction will occur or will occur on the terms and timetable
contemplated hereby.
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 factors and uncertainties
disclosed from time-to-time in Constellation Brands, Inc.'s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended Feb. 29, 2016, which could cause actual future performance
to differ from current expectations.
CONTACTS
Media
Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
Charles Smith Wines Media
Katie Goldberg: (m) 917-558-6462 / (o) 206-505-6552
Core Line:
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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Constellation Brands Inc via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 17.10.2016 - 13:58 Uhr
Sprache: Deutsch
News-ID 500863
Anzahl Zeichen: 9162
contact information:
Town:
Victor
Kategorie:
Business News
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