Tuesday, November 13, 2007

Constellation continues to consolidate industry

Constellation Brands announced on yesterday that it plans to buy the American wine business of rival Fortune Brands for $885 million. Expected to close by the end of the year, the acquisition will bring Constellation annual sales of 2.6 million cases of wine under brands like Clos du Bois, Geyser Peak and Wild Horse, more than 1,500 acres of vineyards in Napa, Sonoma and Carneros, and five wineries.

This adds to their already impressive list of products they represent in the US like Blackstone Winery, Estancia, Franciscan Oakville Estate, Kelly's Revenge, Monkey Bay, Ravenswood, Rex Goliath, Robert Mondavi, Ruffino, Seventh Moon, Simi and Woodbridge by Robert Mondavi. With this latest acquisition, Constellation will control approximately 20 percent of the entire US market. The beer, wine and spirits major has been acquiring alcoholic-beverage businesses since the 1980s.

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