Constellation Brands to sell wine & spirits brands for US$355m

USA – Constellation Brands has signed two agreements with Sazerac Company, one of America’s oldest privately held distillers, and E. & J. Gallo Winery to divest a portion of its alcoholic beverage portfolio in transactions valued at approximately US$355 million. As part of the company’s wine & spirits transformation, Constellation has agreed to sell its Paul Masson Grande Amber Brandy brand, related inventory and interests in certain contracts to Sazerac Company for about US$255 million. The beverage alcohol company said that the deal, which is subject to certain purchase price…

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Constellation Brands further revises wine and spirits divestment deal to US$1.03bn

USA – Constellation Brands and E. & J. Gallo Winery have further reviewed their original transaction to divest a portion of Constellation’s wine and spirits portfolio from US$1.1 billion announced in the December 2019 revised agreement to US$1.03 billion. The initial deal, which included Constellation selling some wine and spirits from its portfolio principally priced at US$11 retail and below, including related facilities located in California, New York, and Washington to E. & J. Gallo Winery, was announced in April 2019 and was pegged at US$1.7 billion. However, in connection…

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Constellation Brands acquires additional stake in Canopy Growth for US$177.2m

USA – Constellation Brands, a leading beverage alcohol company, has acquired an additional 5.1% stake in Canadian CDB-infused beverage company, Canopy Growth Corporation for C$245 million (US$177.22 million). As a result of the acquisition of new common shares, which was made through Greenstar Canada Investment Limited Partnership, an indirect, wholly-owned subsidiary of Constellation Brands, the company now owns 38.6% stake in Canopy Growth. The Corona beer brand owner said that the additional investment in Canopy Growth further reinforces its confidence in the CBD-infused beverage company’s ability to win long-tern in…

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Constellation Brands takes minority stake in Press Premium Alcohol Seltzer

USA – Constellation Brands, through its investment initiative, Focus on Female Founders program has acquired a minority stake in Wisconsin-based Press Premium Alcohol Seltzer. Focus on Female Founders is a program initiated by the company’s corporate venture capital group, Constellation Brands Ventures (CBV), that has committed to supporting the advancement of women within the alcoholic beverage industry. Through the program, Constellation seeks to make meaningful investments in female-founded and female-led businesses doing disruptive and innovative work across beverage alcohol and adjacent categories. As an independent, woman-led and co-owned brand made…

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Constellation Brands affiliate Canopy Growth expands its Board with two appointments

CANADA – Canopy Growth Corporation, a Canadian cannabis infused beverage producer backed by Constellation Brands, has appointed Judy Schmeling as the Chair of the Board of Directors and Jim Sabia as a member of the company’s Board of Directors. Ms. Schmeling has been serving on the Canopy Growth Board of Directors since November 2018 and is chair of the Audit Committee and currently serves on the Board of Directors of Constellation Brands, Inc. as well as Casey’s General Stores. She is the former Chief Operating Officer of HSN Inc., an…

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Constellation Brands revises wine and spirits divestment deal to US$1.1bn

USA – Constellation Brands together with E. & J. Gallo Winery have agreed to revise their original deal in which the Corona beer maker is seeking to sell about 30 wines and spirits brands to approximately US$1.1 billion. In April this year, Constellation had agreed to sell some wine and spirits from its portfolio principally priced at US$11 retail and below, including related facilities located in California, New York, and Washington to E. & J. Gallo Winery for US$1.7 billion. In connection with Federal Trade Commission (FTC) review, the new transaction price will be…

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Canopy Growth names Constellation Brands’ veteran as new Chief Executive Officer

CANADA – Canopy Growth Corporation has appointed Constellation Brands’ executive vice president and chief financial officer David Klein as the company’s new Chief Executive Officer, effective January 14, 2020. David will be replacing Mark Zekulin who will be stepping down from his role as CEO and resigning his seat on the Board of Directors of Canopy effective December 20, 2019.  As a founding employee of Canopy Growth (then Tweed Marijuana Inc.), Mark was instrumental in building Canopy into what it is today first in the role of President, then President…

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Constellation Brands sells Ballast Point to Kings & Convicts Brewing

USA – Constellation Brands, America’s third-largest beer company, has agreed to sell Ballast Point brand and a number of its associated production facilities and brewpubs to Chicago-based Kings & Convicts Brewing Co. Constellation Brands acquired Ballast Point in 2015 for approximately US$1 billion to bolster its craft brews. However, less than two years after the acquisition, the company said that the brand wasn’t growing as expected, forcing it take an impairment charge. At the time of the acquisition, the craft-beer craze was peaking in the US, but production has dipped…

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Canopy Growth begins production of cannabis-infused beverages at its Canadian facility

CANADA – Canopy Growth Corporation, a leading diversified cannabis company, has begun production of cannabis-infused beverages at its beverage facility located at company headquarters in Smiths Falls, Ontario, Canada. The company announced that the 150,000 square-feet facility has received an operating and secure storage licence from Health Canada, which saw Canopy commence operations at the facility. Canopy Growth plans to produce eleven beverages, all based on the company’s unique Distilled Cannabis process in the Smiths Falls facility during the first wave of production, with more added throughout the year. With…

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Constellation Brands posts Q2 loss linked to Canopy Growth’s investment

USA – American beverage company, Constellation Brands reported a loss of US$525.2 million during its second quarter ending August impacted by a US$484 million loss on an investment in Canopy Growth, a Canadian cannabis company. Post transaction, Canopy reported in its first-quarter earnings that it recorded total loss of US$960 million, including a US$900 million charge related to warrants from its investor agreement with Constellation Brands. Outside of the investment in cannabis, Constellation reported improved performance in the beer category. Modelo sales grew 15% during the quarter, and Corona Refresca…

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