US: Constellation Brands promises to grow Modelo brands, hints at new products

By | 5 March 2013

Constellation is talking up the opportunity its sees from gaining 100% control of Crown Imports

Constellation is talking up the opportunity its sees from gaining 100% control of Crown Imports

Constellation Brands has moved to reassure US distributors that it will continue investing in Grupo Modelo brands once it takes full control of Crown Imports. 

In a letter, seen by just-drinks, Constellation's CEO & president, Rob Sands, says the company will have “full rights to create line extensions and new brands to continue to drive” the business. Sands said the deal to capture Crown is the “most transformational milestone” in Constellation's history.

“Constellation is uniquely positioned to be the 100% owner of Crown, and will continue investing to grow Corona and the Modelo portfolio in the US,” the letter reads. 

Constellation has agreed to acquire the rights for Modelo's brands in the US if Anheuser-Busch InBev's US$201.bn acquisition of Grupo Modelo gets regulatory approval. 

The New York-state based company has also agreed to acquire Modelo's Compañía Cervecera de Coahuila brewery, in Piedras Negras, Mexico. It plans to invest around $400m in the brewery. Sands said this will allow the company to  supply “more than 100% of the US marketplace needs". 

He added: “We are confident that our team’s experience in producing and moving hundreds of millions of cases of beverage alcohol annually, along with the experienced and highly-skilled Piedras Negras team and the three-year transition services agreement, have us well-positioned to successfully own and operate the Piedras Negras brewery.”

Expert analysis

2012 The U.S. Beer Market

This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value that is priced much lower, it scrutinizes all aspects, covering state and regional markets, distribution channels, brewers and brands, imports, exports, packaging, pricing, advertising, demographics and projections. It also provides in-depth examination of the mergers, acquisitions and joint ventures reshaping the industry plus projections through 2016.

Sectors: Beer & cider, Spirits

Companies: Constellation, Modelo, InBev

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US: Constellation Brands promises to grow Modelo brands, hints at new products

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