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
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
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