A look at Constellation Brands’ Excellent Run And Recent M&A Strategy

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A look at Constellation Brands’ Excellent Run And Recent M&A Strategy

Published on 17/10/2016 – www.stockmarketdaily.co – Follow us on Twitter: @SMDailyCo.

Constellation Brands (NYSE: STZ) is the parent company behind well known alcoholic beverage brands has seen its stock gain more than 17 percent since the start of 2016, nearly 25 percent over the past year and an astonishing 725 percent over the past five years.

Needless to say the company is among one of the top performing stocks in the consumer discretionary space and within the S&P 500 Consumer Staples Index.

Constellation Brands is the third largest beer company in the U.S. and its notable brands include Corona, Modelo and Pacifico.  The company also has access to the fast growing and popular craft beer segment with its Ballast Point brand.

Constellation Brands is also a leading player in the global premium wine market and some of its more notable brands include Robert Mondavi and Jackson-Triggs.

As a whole the company operates more than 100 brands with sales in around 100 countries.  The company also owns 40 different facilities and employs around nine thousand people across the world.

Part of Constellation Brands’ growth strategy is to acquire quality names and use its global reach and scale to bring higher quality brands to the global market.

Here is a look at the company’s most recent M&A activity.

Minority Stake In Bardstown Bourbon, Acquisition Of Wine Company

Constellation Brands announced on Monday it has agreed to acquire a minority stake in Bardstown Bourbon Company, the largest new whiskey distillery in the U.S.  The company noted that the acquisition is a means of advancing its less penetrated spirits business.

In addition, the company also acquired Charles Smith Wines, the owner of five super and ultra premium wines.  The company stated that it was attracted to the brand given its “strong consumer affinity and demand” and double-digit volume growth over the past three years.

High West Distillery Acquisition Closes

In conjunction with the company’s Bardstown Bourbon and Charles Smith Wines announcement, the company also said on Monday that it closed and finalized its acquisition of High West Distillery.

Constellation Brands announced on October 5 that it has agreed to acquire all of High West’s operations and its portfolio of high-end American straight whiskeys.  Similar to Charles Smith Wines, High West’s products has seen double-digit volume growth over the past few years.

The acquisition gives Constellation Brands immediate access to the profitable high-end craft whiskey segment.

“High West’s whiskeys are high-end, distinctive and delicious – perfect for today’s knowledgeable consumer who enjoys artfully crafted whiskeys,” said Bill Newlands, president, wine and spirits division, Constellation Brands. “With the addition of High West, Constellation Brands bolsters its position in the dynamic and growing craft spirits category.