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Constellation Brands Signs Distribution and Broker Agreements in 14 States

Posted on  | May 21, 2012   Bookmark and Share
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Builds on go-to-market initiative launched in 2009 to drive better efficiencies and effectiveness~

Constellation Brands, Inc., (NYSE: STZ), the world’s leading premium wine company, announced today that it is nearing completion of the second phase of its distribution transition with the signing of multi-year agreements with Republic National Distributing Company (RNDC), Young’s Market Company, Johnson Brothers and Horizon Beverage Company. The agreements further Constellation’s continued strategy to simplify its distribution and broker network and go-to-market model. The initiative, which began in 2009, will now represent nearly 70 percent of the company’s total U.S. wine and spirits business.

“During the last two years, we have seen success in the initially consolidated markets where they have outperformed the non-consolidated markets in depletion trends,” said Rob Sands, president and chief executive officer, Constellation Brands. “The signing of these new agreements represents our continued focus on creating efficiencies and developing consolidated points of contact for our distributors and brokers to ensure our products are in the right place and receive the attention they deserve. We are very pleased to continue to drive our product portfolio into the marketplace in an efficient manner and expect to grow the business through these expanded relationships.”

The firms were selected based on pre-established criteria and have been appointed as follows:

RNDC will serve as the exclusive distributor for wine and spirits brands in North and South Dakota.

Young’s Market Company will serve as the exclusive broker for wine and spirits brands in Utah and Wyoming; exclusive broker for spirits brands in Oregon, Idaho and Montana; and exclusive distributor for spirits brands in Washington, while continuing to serve as the exclusive distributor of wine brands in the state.

Johnson Brothers will serve as the exclusive distributor for wine brands in Minnesota and continues to be a wholesaler for the company’s spirits brands in the state.

Horizon Beverage Company will serve as the exclusive broker for wine and spirits brands in New Hampshire; exclusive broker for spirits brands in Maine and Vermont; exclusive distributor for wine and spirits brands in Rhode Island; and the only full-line distributor for Constellation’s brands in Massachusetts.

The consolidated U.S. distribution model is structured to drive profitable, organic growth through deeper, highly-aligned distributor and broker relationships with dedicated focus on Constellation’s portfolio and improved coordination of marketing and promotional programs that support the brands.

Source: Reuters

Fri May 18, 2012


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