Constellation Brands Announces Distribution Agreement with Young's Market Company
Signs multi-year agreement with Young's Market Company in Alaska, Washington, and Oregon
VICTOR, N.Y., Oct. 12 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE:STZ)(NYSE:ASX:)(NYSE:CBR), the world's leading wine company, announced today the signing of a multi-year distribution agreement with Young's Market Company and its affiliated companies ("Young's") as Constellation's exclusive distributor in Alaska, Washington, and Oregon. Young's, a recognized market leader in the Pacific Northwest, has a longstanding business relationship with Constellation. Constellation is currently Young's largest supplier in volume in the Pacific Northwest representing more than an estimated one million cases annually.
This agreement is part of Constellation's ongoing realignment of its distributor network which was announced on July 23. The Young's distribution agreement brings the total number of states benefiting from this new go-to-market strategy to 22, with 8 potential markets remaining. The decision to consolidate the majority of Constellation's U.S. wine and spirits business to one distributor per market was made with the goal of improving organic growth, creating distributor teams focused exclusively on Constellation's portfolio, and improving the coordination of marketing and promotional programs to support the brands.
Constellation's agreement with Young's will create better alignment of goals and priorities between the two companies improving performance and market execution for both.
"Our U.S. sales force and Young's sales force are completely aligned in these markets, which will ensure our products are in the right place and at the right price," said Rob Sands, president and chief executive officer of Constellation Brands. "Young's has been an important part of Constellation's success. We are excited to enter this new phase of our relationship and grow the business together."
Commenting on Young's expanded relationship with Constellation, Christopher Underwood, CEO of Young's Market Company, said, "Young's and its affiliated companies in the Pacific Northwest are delighted and honored to have been selected as Constellation Wines U.S. exclusive distribution partner in Oregon, Washington, and Alaska. We believe that the expansion of our relationship in these markets is a reflection of the mutual respect that Young's and Constellation have for one another and we look forward to maintaining that relationship well into the future."
Constellation Brands' largest operating company, Constellation Wines U.S., has a powerful portfolio of wine and spirits including iconic leading brands such as Robert Mondavi Winery, Clos du Bois, Blackstone, Woodbridge by Robert Mondavi, Arbor Mist, Estancia, Ravenswood, Kim Crawford, Toasted Head, Black Box, Black Velvet Canadian Whisky and SVEDKA Vodka.
About Young's Market Company
Young's Market Company is one of the largest distributors and brokers of wine and spirits in the U.S., with operations in California, Hawaii, Arizona, Oregon, Washington, Alaska, Idaho, Utah, Montana and Wyoming.
About Constellation Brands
Constellation Brands is the world's leading wine company that achieves success through an unmatched knowledge of wine consumers paired with storied brands that suit varied lives and tastes. With a broad portfolio of widely admired premium products across the wine, beer and spirits categories, Constellation's brand portfolio includes Robert Mondavi, Hardys, Clos du Bois, Blackstone, Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.
Constellation Brands (NYSE:STZ)(NYSE:and)(NYSE:STZ.B) is an S&P 500 Index and Fortune 1000® company with more than 100 total brands in our portfolio, sales in about 150 countries and operations in approximately 50 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 Brands and its product portfolio visit the company's web site at www.cbrands.com.
This news release contains forward-looking statements. These statements may relate to Constellation's 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 the forward-looking statements.
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:
-- implementation of consolidation activities and actual U.S. distributor transition experience; and
-- 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, 2009, which could cause actual future performance to differ
from current expectations.