Constellation Touts Share Gains Across Wine, Spirits And Beer As Sales Rise 5%April 10, 2013
Constellation Brands’ net sales increased 5% to $2.8 billion in its fiscal year ended February 28, as key wine brands like Kim Crawford, Robert Mondavi, Simi, Ruffino, Mark West, Black Box and Rex Goliath all saw double-digit depletions growth. Newer brands like Simply Naked, Primal Roots and The Dreaming Tree were also up robustly, and Svedka, Nobilo and Clos du Bois likewise made gains. Meanwhile, Constellation’s Crown Imports joint venture with Grupo Modelo saw sales lift by 5% to $2.6 billion, as Modelo Especial, Corona Light, Negra Modelo and Pacifico all enjoyed record sales.
Constellation president and CEO Rob Sands said the group’s pending deal to take full control of Crown would be “the most transformational acquisition in the history of our company.” The proposed acquisition—on which Constellation, acquisition partner Anheuser-Busch InBev and U.S. regulators are expected to come to final terms by April 23—would see Constellation pay a total of $4.75 billion, including $1.85 billion for the 50% of Crown it doesn’t own, and $2.9 billion for Modelo’s Piedras Negras brewery and perpetual rights to the Modelo brands in the U.S. market.
“Overall, this transaction will nearly double the sales of our company, significantly enhance our earnings and free cash flow, diversify our profit stream and provide new avenues for growth,” Sands said.