Australia:
Sheralee Davies – +61 8 8392 2298
U.K.:
Michelle Norman – +44 483
690205
Constellation
Considering Opportunities for Its Australian and U.K. Businesses
VICTOR, N.Y., Nov. 1, 2009 –
Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), the world’s leading wine
company, announced today that it is pursuing a number of opportunities with
various parties to improve the prospects of its Australian and U.K. businesses.
These include opportunities which may result in the sale of certain assets and a
possible combination of a portion of Constellation’s Australian and U.K. wine
operations with Australian Vintage Ltd. (AVL) in exchange for a substantial, but
non-controlling, interest in the combined entity. Headquartered in Sydney, AVL
is a leading wine company in Australia.
This
potential combination would create synergies between the two companies, better
positioning the new entity for success in the current challenging operating
environment. If a transaction results, the combined companies would operate as a
stand alone wine company, which would be listed on the Australian Stock Exchange
(ASX).
“The
Australian wine industry is facing unprecedented negative operating conditions,”
said Rob Sands, president and chief executive officer, Constellation Brands.
“This combination would create a more competitive entity better positioned to
deal with the current environment.”
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As the
discussions between Constellation Brands and AVL are ongoing, there are a number
of material issues which need to be addressed before a deal can be finalized. As
a result, the discussions are preliminary and may not lead to such a
transaction.
“Constellation
Brands remains focused on achieving stronger, more sustainable results by
tightening the focus of the portfolio, optimizing assets and finding synergies
across all aspects of the business,” concluded Sands.
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 and STZ.B; ASX: CBR) 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.
Forward-Looking
Statements
This news release contains
forward-looking statements. The words “anticipate,” “intend,” and
“expect”, and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such identifying
words. 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:
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completion
of any transactions regarding its Australian or United Kingdom businesses;
and
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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.
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