Wine firm Constellation Brands has announced the completion of the sale of its Gaymer Cider Company business to C&C Group PLC of Dublin. The ASX and NYSE-listed company sold their UK cider business for a purchase price of £45 million (A$80m). “The company expects to use the proceeds from the sale to reduce borrowings,” they said in a statement a week after reporting a four per cent drop in third quarter sales. Read More →
Wine company Constellation Brands has reported a four per cent decline in sales for the third quarter and 47 per cent decline in net profit as trying conditions in the wine industry force a restructure of the business. “During the quarter, we continued to execute well against our strategic goals of generating cash, paying down debt and reducing costs,” Rob Sands, President and CEO, Constellation Brands, remarked. “U.S. branded wine net sales were impacted by continuing economic... ...Read more »
ASX-listed wine businesses Constellation Brands and Australian Vintage have applied for informal merger clearance from the Australian Competition and Consumer Commission as talks continue for a possible tie-up between the two firms. The companies advised that talks ”may result in a possible combining of part of CBI’s Australian and U.K. wine operations with AVL in exchange for a non-controlling, 50% equity interest in the combined entity” but warned that there is no certainty... ...Read more »
Australian Vintage announced today that it is in discussions with Constellation Brands “which may result in a possible combining of part of CBI’s Australian and UK wine operations with AVL in exchange for a substantial, but noncontrolling, interest in the combined entity”. The winemaker said that the difficult trading conditions were the impetus for the discussions. “This potential combination would create synergies between the two companies, better positioning both for success... ...Read more »
Constellation Brands, the world’s largest wine company and a leading international producer and marketer of beverage alcohol, has entered into an agreement to sell its spirits business to New Orleans-based Sazerac Company for US$334 million (A$492m). The transaction is expected to close by the end of February 2009. Constellation, which is listed on the Australian Stock Exchange and owns the Houghton and Hardys brands among others, is retaining the SVEDKA Vodka, Black Velvet Canadian Whisky... ...Read more »