Blog: Chris MercerConstellation, 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.


Are you fodmap-compliant? The latest health fad uncovered

Forget gluten-free. Fodmaps are the latest food trend, and if you work in the soft drinks industry it is important to know where you stand with them....


Baileys and the "bellwether of naffness"

Companies are very protective of their brand image. So it is refreshing to hear Diageo's Garbhan O’Bric, the global brand director for Baileys, speak the unvarnished truth when talking about the lique...


From pixels to pilsner - how video games are moving into alcohol

Alcohol companies love a good movie tie-in. A brush with Hollywood glamour seems to give marketers the warm and fuzzies, judging by the number of deals done over the past few years. The new James Bond...


Tax Free World Association - Day three: Beam Suntory's big boat and Patron's virtual home

just-drinks is in Cannes this week at the Tax Free World Association show. Here's the second part of Andy Morton's blog, which will keep you up-to-date at one of the most important dates in the Trave...

just-drinks homepage

Forgot your password?