Constellation Brands Inc

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International Guild of Hospitality & Restaurant Managers

Constellation Brands Inc. (NYSE:STZ)

Constellation Brands, Inc., incorporated in 1972, is engaged in the production and marketing of beverage alcohol brands in North America and the United Kingdom . The Company is a supplier of wine, a marketer of imported beer and a supplier of distilled spirits, and a single-source supplier of these products in the United States . In the United Kingdom , the Company is marketer of wine, a producer and marketer of cider and independent drinks wholesaler. Constellation has five operating segments: Popular and Premium Wine, Imported Beer and Spirits , UK Brands and Wholesale, Fine Wine and Corporate Operations and Other (primarily corporate-related items). During Fiscal 2001, the Company changed its name from Canandaigua Brands, Inc. to Constellation Brands, Inc.

On July 2, 2001 , the Company acquired all of the outstanding capital stock of Ravenswood Winery, Inc. (Ravenswood), a premium wine producer based in Sonoma , California . On March 26, 2001 , the Company acquired certain wine brands, wineries, working capital (primarily inventories) and other related assets from Corus Brands, Inc. In this acquisition, Constellation acquired several premium wine brands primarily sold in the northwestern United States , including Covey Run, Columbia , Ste. Chapelle and Alice White. On March 5, 2001 , the Company acquired several premium wine brands, including Vendange, Nathanson Creek, Heritage and Talus, as well as working capital (primarily inventories), two wineries in California and other related assets from Sebastiani Vineyards, Inc. and Tuolomne River Vintners Group.

On July 31, 2001 , Constellation and BRL Hardy Limited completed the formation of Pacific Wine Partners LLC (PWP), a joint venture owned equally by the Company and BRL Hardy Limited, a wine company in Australia . PWP produces, markets and sells a global portfolio of premium wine in the United States , including a range of Australian imports. PWP has exclusive distribution rights in the United States and the Caribbean to seven brands: Banrock Station, Hardys, Leasingham, Barossa Valley Estate and Chateau Reynella from Australia ; Nobilo from New Zealand , and La Baume from France . The joint venture also owns Farallon, a premium California coastal wine. In addition, PWP owns a winery and controls 1,400 acres of vineyards, all located in Monterey County , California . On October 16, 2001 , Constellation announced that PWP completed the purchase of certain assets of Blackstone Winery, including the Blackstone brand and the Codera wine business in Sonoma County .

Popular and Premium Wine

The Popular and Premium Wine segment produces, bottles, imports and markets wine and brandy in the United States. It is a supplier of wine in the United States and exports wine to approximately 60 countries from the United States . This segment sells table wine, dessert wine, sparkling wine and brandy. Its brands include Alice White, Almaden, Arbor Mist, Covey Run, Dunnewood, Estate Cellars, Inglenook, Manischewitz, Marcus James, Paul Masson, Talus, Taylor, Vendange, Vina Santa Carolina, Cook's, J. Roget, Richards Wild Irish Rose and Paul Masson Grande Amber Brandy.

As a related part of its United States wine business, the Popular and Premium Wine segment is a grape juice concentrate producer. Grape juice concentrate competes with other domestically produced and imported fruit-based concentrates. Its other wine-related products and services include bulk wine, cooking wine, grape juice and St. Regis, a de-alcoholized line of wine in the United States .

Imported Beer and Spirits

The Imported Beer and Spirits segment imports and markets a diversified line of beer and produces, bottles, imports and markets a diversified line of distilled spirits. It is a marketer of imported beer in the United States , and distributes six of the top 25 imported beer brands in the United States , including Corona Extra, Modelo Especial, Corona Light, Pacifico, St. Pauli Girl and Negra Modelo. Its other imported beer brands include Tsingtao from China , Peroni from Italy and Double Diamond and Tetley's English Ale from the United Kingdom .

The Imported Beer and Spirits segment is a supplier of distilled spirits in the United States , and exports distilled spirits to approximately 25 countries from the United States . Its principal distilled spirits brands include Black Velvet, Fleischmann's, Mr. Boston, Canadian LTD, Chi-Chi's prepared cocktails, Ten High, Montezuma, Barton, Monte Alban and Inver House. The Imported Beer and Spirits segment also sells distilled spirits in bulk, and provides contract production and bottling services for third parties.

UK Brands and Wholesale

The UK Brands and Wholesale segment's Stowells of Chelsea brand is a branded table wine in the United Kingdom . This segment maintains a market share position in fortified British wine through its QC and Stone's brand names, and a strong market position in the wine style drinks category through Babycham, Country Manor and Arbor Mist. The UK Brands and Wholesale segment is a producer and marketer of cider in the United Kingdom . Its cider brands include Blackthorn, Gaymer's Olde English, Diamond White and K. It also produces and markets Strathmore bottled water in the United Kingdom . The UK Brands and Wholesale segment is an independent beverage wholesaler to the on-premise trade in the United Kingdom . Its wholesaling business involves the distribution of branded wine, distilled spirits, cider, beer and soft drinks. While these products are primarily produced by third parties, they also include the UK Brands and Wholesale segment's branded wine, cider and water products.

Fine Wine

The Fine Wine segment includes Estancia, Ravenswood, Franciscan Oakville Estate, Simi, Veramonte, Mt. Veeder and Quintessa wines. The portfolio of fine wines is supported by the segment's winery and vineyard holdings in California and Chile. The Fine Wine segment also exports its products to approximately 25 countries from the United States.

Corporate Operations and Other

The Corporate Operations and Other segment includes traditional corporate related items. It also includes the results of an immaterial operation.

The Company competes with E & J Gallo Winery, The Wine Group, Heineken USA, Molson Breweries USA, Labatt's USA, Guinness Bass Import Company, Brown-Forman Beverages, Jim Beam Brands and Heaven Hill Distilleries, Inc., Beringer Blass, Robert Mondavi Corp., Kendall-Jackson, H.P. Bulmer, Halewood Vintners, Waverley Vintners and Volvic.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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