Blog: Constellation, Modelo retake vows
Chris Mercer | 29 October 2010
Constellation Brands and Grupo Modelo have kissed and made up, so it looks like Crown Imports will be sticking around.
Constellation and Modelo said today that they have settled their legal dispute over marketing funds for the Crown Imports beer venture in the US. The 50-50 venture imports Modelo's Corona lager among others.
It looked as if the venture might be coming to a premature end (it runs until 2016) when Modelo signalled that it would sue its partner at the end of 2009. But, today, everyone is back in bed.
Constellation has repeatedly called the dispute "financially immaterial" and it looks as though the two firms will, afterall, continue to work together.
The most likely alternative for Modelo, assuming it could have afforded the Crown Imports cancellation fees, would have been a deal with Anheuser-Busch InBev. The Budweiser brewer holds a 50% non-controlling stake in Modelo.
However, Modelo's controlling families don't have a lot of love for A-B InBev, as they proved in the UK recently by snubbing the group in favour of rival Molson Coors.
Some people in India believe alcohol should be more difficult to purchase. Last month, the state of Bihar halted all alcohol sales as its chief minister made good on an election promise. ...
Greetings from Zurich. Here as a guest of Heineken's Amstel brand, I'm due to sit down later today with the group's senior global director for international brands, Walter Drenth....
Drinks companies spend a lot of money on trying to predict trends. At last night's Worshipful Company of Distillers City debate, any strategists in the audience got a bit of forecasting for free....
I'll admit to being partial to an Aperol Spritz now and again, more usually in the summer months, sitting outside, shades on, slowly turning more golden/rusty....
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Tomorrow's Market Trends - Scotch Whisky III
- Key Brands Performance - Scotch Whisky IV
- Category Innovations - Scotch Whisky VII
- Beam Suntory names CFO, makes structural changes
- Diageo to accept US$1m South Korea fine
- Analysts clash over AB InBev SAB Brexit impact
- Brown-Forman shuffles director pack
- Pernod switches Travel Retail Europe op's director
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Soft Drinks Global Overview: Growth Opportunities Between Category Lines
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China