Constellation Brands

Constellation Brands has succeeded in forcing two more Southern California beer wholesalers to sell the rights to distribute the company’s beer offerings to the Reyes Beverage Group. In separate deals, Reyes acquired the rights to sell Constellation’s offerings — including popular imported Mexican beer labels Corona, Modelo and Pacifico as well as craft offerings from Ballast Point — from Triangle Beverage in Santa Fe Springs and Beauchamp Distributing Company in Compton. The long-rumored deals officially closed on Friday, October 19, according to Constellation spokeswoman Jamie Stein.

Rob Sands will step down as CEO of Constellation Brands on March 1, 2019, the New York-based alcohol beverage company announced today. Assuming the role from Sands will be Bill Newlands, who joined Constellation as chief growth officer in 2015 and took over as president from Sands in February.

In the latest edition of People Moves: Anchor appoints a new VP of sales; Constellation Brands promotes from within; Fair State Brewing nabs an ex-Surly brewer; MillerCoors selects new VP of the Coors brand family; and the NBWA hires a new VP of communications.

Constellation Brands reported its second-quarter fiscal 2019 earnings today, which were highlighted by 10.1 percent growth in beer depletions (sales-to-retailers) and an 8.7 percent increase in shipments (sales-to-wholesalers) for the comparable three-month period ending August 31. Net sales of Constellation Brands’ beer portfolio increased 10.5 percent during the quarter, to more than $1.5 billion.

Under the specter of Constellation Brands potentially forcing additional sales of its distribution rights in California, leaders from the National Beer Wholesalers Association stressed the importance of protecting state franchise laws to thousands of wholesalers and industry professionals attending the trade association’s annual convention in San Diego. NBWA chairman Jim Matesich, without naming Constellation Brands, pointed to trade press headlines from June when the beverage alcohol company forced Markstein Beverage Co. to sell its distribution rights in northern San Diego County to Reyes Beverage Group. “Terminations without cause, particularly of distributors that took risks and helped build those brands create distrust in trading partners,” he said.

Surging freight costs, a shortage of long-haul truck drivers and new laws restricting the number of hours that drivers can be on the road are cutting into profits of beer companies and other major corporations throughout the United States. Although increased transportation costs are affecting all consumer goods industries, Beer Institute chief economist Michael Uhrich told Brewbound that they’re disproportionately affecting the beer industry because the vast majority of beer sold domestically is shipped. Last year, beer companies shipped 2.9 billion cases of beer, according to the National Beer Wholesalers Association.

Thousands of California beer industry professionals met in Sacramento last week for the California Craft Brewers Association annual three-day Craft Beer Summit, Expo and Beer Festival. As an official media partner of the event, Brewbound hosted 10 hours of live streamed interviews, and sat in on a variety of seminars during the show. Here’s what we learned.

Inspired by beer that was served at pre-prohibition saloons, Western Standard, a High West endeavor, is rolling out now in Minneapolis, Salt Lake City and Phoenix. Western Standard is a modern sessionable barrel-aged lager blended with beer aged in High West bourbon barrels.

Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that Bill Newlands, president and chief operating officer and David Klein, chief financial officer, will present at the Barclays Global Consumer Staples Conference on Wednesday, September 5, 2018, at the Intercontinental Hotel in Boston, Mass.

This pretty lady will make you pucker. Ballast Point is kicking off a new Trade Street Collection with a barrel-aged version of award-winning sour, introducing a new White Wine Barrel-Aged Sour Wench available nationwide.

Corona Extra® has drafted former star quarterback and current football analyst Tony Romo as the operator and face of the fan-favorite Corona Hotline, which returns for its second year this football season. Featuring a new number, 1-844-9-Corona, fans can call the Corona Hotline all season long to tap into Romo’s renowned powers of prediction, hear gameday reflections and enter for a chance to win prizes such as Corona gear or poolside seats in Las Vegas for the Big Game.

Following the signing of a law allowing Illinois breweries to immediately begin selling beer and cider from outside beer companies in their taprooms, several Chicago restaurant and craft beer bar owners expressed concern that new regulations create additional competition for their businesses. However, a couple of Chicago brewery owners told Brewbound that they don’t anticipate major changes in the way they run their taproom businesses.

On the same day that it announced a $4 billion investment into Canada’s Canopy Growth Corporation, Constellation Brands also laid off dozens of employees tasked with selling the company’s craft and specialty beers throughout the U.S. Constellation — whose craft portfolio includes Ballast Point in California, Funky Buddha in Florida and Four Corners Brewery in Texas as well as Mexican import brands Corona, Modelo and Pacifico — terminated around 60 of its 100 or so craft and specialty reps, a source familiar with the situation told Brewbound.

Constellation Brands is taking a second hit of Canopy Growth Corporation (TSX: WEED). Less than a year after spending $191 million to acquire a 9.9 percent stake in the Canadian cannabis company, the Corona and Modelo maker today announced it would invest approximately $4 billion to acquire 104.5 million shares of Canopy, raising its stake to about 38 percent.