Constellation Revamps U.S. Route To Market In Second Phase Of Distributor ConsolidationMay 18, 2012
Constellation Brands has entered into several new multi-year distributor agreements across the U.S., representing the second phase of its distributor consolidation drive, the first phase of which commenced in 2009. The agreements announced today cover 14 markets.
Going forward, RNDC will serve as Constellation’s exclusive distributor for wine and spirits in North and South Dakota. Young’s Market Company will serve as the exclusive broker for wine and spirits in Utah and Wyoming; exclusive broker for spirits in Oregon, Idaho and Montana; and exclusive distributor for spirits in Washington, while continuing to serve as the exclusive distributor of wine brands in the state.
Johnson Brothers will serve as the exclusive distributor for wine in Minnesota and continues to be a wholesaler for the company’s spirits brands in the state. Finally, Horizon Beverage Company will serve as the exclusive broker for wine and spirits in New Hampshire; exclusive broker for spirits in Maine and Vermont; exclusive distributor for wine and spirits in Rhode Island; and the only full-line distributor for Constellation’s brands in Massachusetts.
With completion of this second phase of its realignment, Constellation will have consolidated its distribution footprint down to one wholesaler per state across 70% of its U.S. business. The first phase covered more than half the company’s U.S. business, and granted Southern Wine & Spirits and RNDC large swathes of territory, with National Wine & Spirits and Johnson Bros. picking up the exclusive contract in one state each.
Constellation president and CEO Rob Sands said the initiative has been beneficial in the areas where it’s already been implemented, noting, “the initially consolidated markets have outperformed the non-consolidated markets in depletion trends” over the past two years.
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