Constellation Purchases Remaining Portion of Iconic Ruffino Wine Business
(Thomson Reuters ONE) -
VICTOR, N.Y., Oct. 6, 2011 - Constellation Brands, Inc. (NYSE: STZ), the world's
leading premium wine company, announced today that it has purchased the
remaining 50.1 percent of Ruffino S.r.l. from MPF International S.r.l., an
entity controlled by the Folonari family of Tuscany, Italy for approximately ?50
million, ($69 million). Constellation also assumes approximately ?55 million,
($73 million) of debt, net of cash acquired, as part of the transaction.
Constellation welcomes approximately 130 employees and now fully owns the iconic
Ruffino brand and historical production facility located in close proximity to
Florence. The wines continue to be produced on approximately 600 hectares of
prestigious vineyards at the same Tuscan Estates of Ruffino as has been done for
decades.
"The prestigious Ruffino brand, which dates back to 1877, is an internationally
recognized Old World wine brand that sets the standard for Italian wines," said
Rob Sands, president and chief executive officer, Constellation Brands, Inc. "We
intend to build on the history of the Folonari family and the image and
reputation they brought to the brand for today's wine consumers who enjoy Tuscan
style wines."
"Constellation has a history of evolving iconic wines, such as the Robert
Mondavi brand, and nurturing them to their full potential," said Adolfo
Folonari, the outgoing managing director of Ruffino S.r.l, who will remain with
Ruffino as a board member. "I am confident that Constellation will leverage its
global best practices to take the Ruffino brand to an entirely new level, while
carefully preserving the heritage of the wines."
Among Ruffino's most recognized brands are the coveted Ruffino Riserva Ducale
which is celebrating its 80th anniversary vintage this year and Riserva Ducale
Gold, Il Ducale, Chianti Superiore, Lumina and Modus. According to SymphonyIRI
industry data for the last 52 weeks, Ruffino is experiencing approximately eight
percent growth in dollar sales in the U.S. Ruffino's year-to-date global sales
are growing at nine percent. The brand has launched a number of new items in the
last year, including the highly successful introduction of Ruffino Prosecco
sparkling wine.
Constellation also named Sandro Sartor to be the general manager of Ruffino,
effective November 1, 2011. Sartor will be responsible for running the day-to-
day operations of the Ruffino business and will report to Greg Fowler,
Constellation's senior vice president, operations. Most recently, Sartor served
as managing director and general manager for Diageo Italia S.p.A.
Constellation's equity interest in Ruffino began in 2004 with a 40 percent stake
in the company and increased to 49.9 percent in 2010. Since then, the Ruffino
brand has become one of Constellation's 19 "focus brands" which represent the
majority of profit for the company's U.S. wine and spirits business.
Ruffino annually produces 1.3 million cases of wine which are sold in key
markets around the world. Approximately 50 percent of its sales are currently
made by Constellation in the U.S. The remaining portion is expected to become
incremental to Constellation's total wine volumes.
For financial reporting purposes, Constellation will begin consolidating
Ruffino's financial results in its North American segment, where previously they
were recorded as equity earnings. Constellation expects this transaction to be
neutral to the company's ongoing diluted EPS for fiscal 2012.
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 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, Blackstone, Arbor Mist, Estancia, Ravenswood, Ruffino, Jackson-Triggs, Kim
Crawford, 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 30 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 atwww.cbrands.com.
About Ruffino S.r.l.
Founded in 1877, Ruffino is synonymous with the story of Tuscan winemaking.
Classic wines such as Chianti Classico and Chianti, Brunello di Montalcino and
Vino Nobile di Montepulciano have always been the soul of Ruffino's portfolio.
The foresight of the winery and the desire of new exciting challenges, has also
led to the creation of imposing Supertuscans and other wines produced with local
and international grape varieties.
Tradition and innovation. Experience. Territory. Desire to reach excellence
through passion and knowledge, in the vineyards as well as in the cellars. A
historic, yet dynamic and modern producer of one of the most acclaimed Italian
products in the world: wine. To learn more about Ruffino, visit the company's
websitewww.ruffino.com
Forward-Looking Statements
This news release contains forward-looking statements. The words "intend," and
"expect" and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such identifying
words. As to Constellation and/or Ruffino, 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.
All forward-looking statements speak only as of the date of this news release.
Constellation can give no assurance that the expectations reflected in the
forward-looking statements will prove to be correct and 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 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 the company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the fiscal year ended Feb.
28, 2011, which could cause actual future performance to differ from current
expectations.
Media Relations
Angela Howland Blackwell-585-678-7141
Cheryl Gossin--585-957-3701
Ruffino: Francesco Sorelli--+0039 55 83605
Investor Relations
Patty Yahn-Urlaub--585-678-7483
Bob Czudak--585-678-7170
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
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Datum: 06.10.2011 - 09:00 Uhr
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News-ID 73313
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