04.06.16 | Press Releases
~ Acquisition further strengthens Constellation's position at high end of the wine category ~
VICTOR, N.Y., April 6, 2016 - Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading premium wine company announced that it has agreed to acquire The Prisoner Wine Company's portfolio of brands from Huneeus Vintners, a fine wine company. The portfolio includes five fine wine brands led by The Prisoner, a fast growing super luxury wine, and also includes Saldo, Cuttings, Blindfold and Thorn. The transaction is expected to close by the end of April.
The brands from The Prisoner Wine Company have grown quickly over the last three years, offering a portfolio of unique wine blends anchored by The Prisoner. Launched in 2003, The Prisoner soon became the most recognized innovative and unique Napa Valley Red Wine blend, leading the resurgence of blends, and today is the #1 super luxury red blend, growing 28 percent in retail sales since last year, while maintaining a strong presence in the on premise*. The Prisoner has a consistent track record of 90+ point scores and has been a Wine Spectator Top 100 wine three times. Saldo is the #2 super luxury Zinfandel with IRI dollar sales growth of more than 40 percent over the last 52 weeks while Blindfold is the #1 super luxury white blend*.
"More than ever, consumers are seeking high quality, distinctive wines and the portfolio we are acquiring from The Prisoner Wine Company delivers," said Bill Newlands, president of the Wine and Spirits Division of Constellation Brands, Inc. "Huneeus Vintners is known for building luxury wine brands and excels in growing gems and turning them into powerhouse brands. These wines resonate with consumers and this acquisition further strengthens our position in the fine wine segment of the category."
"Huneeus Vintners and Constellation have a strong history of respect and success working together," said Agustin Francisco Huneeus. "Our team - including employees, growers, distributors, and winery partners - have created and built an exceptional portfolio of fine wines and we are very proud of the success they have achieved in a relatively short timeframe. Constellation's market reach, business intelligence and access to high quality grapes, will enable the brands' continued growth momentum."
Huneeus Vintners and Constellation will maintain a winemaking consulting agreement with The Prisoner Wine Company general manager and winemaker Jen Beloz and her production team, to ensure continuity in the unique styles of the wines. The wines will have further access to premium Napa fruit and winemaking and production will occur at Franciscan Estate winery.
The Prisoner was created and inspired by the drinkable "mixed blacks" first made by the Italian immigrants who originally settled in the Napa Valley. The wine is a blend of Zinfandel, Cabernet Sauvignon, Syrah, Petite Sirah and Charbono. It features enticing aromas of bing cherry, espresso, and roasted fig. Persistent flavors of ripe raspberry, pomegranate and wild berry linger harmoniously for a smooth and luscious finish.
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. In 2015, Constellation was one of the top performing stocks in the S&P 500 Consumer Staples Index. Constellation is the number three beer company in the U.S. with high-end, iconic imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Pacifico, and Ballast Point, one of the most awarded craft brewers in the U.S. Constellation is also 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 Black Velvet Canadian Whisky.
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 Huneeus Vintners
Spanning generations and hemispheres, the fine wines of Huneeus Vintners reflect a sense of place and a passion for excellence. After years of running global wine companies, father and son, Agustin Huneeus and Agustin Francisco Huneeus, teamed up in 2005 to establish a portfolio of wines that represent the finest vineyard estates, appellations and wines in both North and South America. Today, the critically-acclaimed wines and estates include Quintessa, Flowers, Faust, Illumination, The Prisoner Wine Company (The Prisoner, Saldo, Cuttings, Blindfold and Thorn), Neyen, Primus, Ritual and Veramonte. It takes generations of focus, passion and determination to build some of the greatest wine brands in the world. Learn more at www.huneeusvintners.com.
This news release contains forward-looking statements. The word "expect" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Those statements may relate to Constellation Brands' 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. There can be no assurance that any transaction between Constellation Brands and Huneeus Vintners will occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release. Constellation Brands undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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 completion of the announced transaction, the accuracy of all projections, and other 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. 28, 2015, which could cause actual future performance to differ from current expectations.
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* IRI, Total US Multi-Outlet and Convenience, 52 weeks ending 2/21/16