Constellation Brands Handing Majority of US Non-Beer Distribution to Southern Glazer's

SAN FRANCISCO — Beverage alcohol producer and marketer Constellation Brands announced March 1a future-focused evolution of its domestic wine and spirits distributor network to accelerate its business strategy and drive long-term value creation for the market. As part of this decision, Constellation has awarded Southern Glazer’s Wine & Spirits distribution responsibilities across approximately 70 percent of its wine and spirits brand portfolio in the United States, effective April 1.

This move aligns with Constellation’s wine and spirits vision to be a bold and innovative, high-end portfolio of distinctive brands and products that deliver exceptional consumer experiences. The expanded relationship reinforces Constellation’s commitment to leading the category in high-growth consumer segments and building a winning omnichannel brand portfolio.

“Achieving a consumer-focused route to market is essential to achieving our objective to out-pace, out-grow and out-execute the category in channels where consumers are choosing to engage,” said Robert Hanson, executive vice president and president - wine and spirits division, Constellation Brands. “Southern Glazer’s is a proven brand builder with a strong national footprint, a digital commerce innovator and a standout leader in the luxury category. We share a future-focused mindset and strategic orientation that we are confident will enable us to drive our consumer-first agenda. Furthermore, SGWS shares in our commitment to creating diversity, equity and inclusion within our organizations, in the communities we serve, and across our industry. We look forward to working with them to create positive change while driving growth for many years to come.”

“We are not only fully aligned with Constellation Brands’ strategy to accelerate growth in high-end wine and spirits categories, but also in our efforts to drive greater diversity in the industry,” said Wayne E. Chaplin, Chief Executive Officer, Southern Glazer’s Wine & Spirits. “Our like-minded cultures and joint commitment to building brands along with communities positions us to achieve great things in 2021 and beyond.”

Constellation launched its wine and spirits business transformation in 2019 and has evolved its portfolio into a focused set of higher-end, broad-shouldered brands aligned with consumer preferences. The portfolio continues to outpace high-end wine and spirits segments, primarily driven by its Power Brands at the greater than $11 price point including Kim Crawford, Meiomi, The Prisoner Wine Company and High West. The company began its Digital Transformation in 2020 and aspires to be the strongest direct-to-consumer and digital commerce business in the category. Constellation is leading the category in 3-tier e-commerce, with its wine Power Brands outpacing the market +35 percentage pts in L12W. The company continues to pursue the long-term consumer premiumization trend and is committed to enhancing its leadership in fine wine and craft spirits segments where consumer growth is occurring.

Terms of the agreement were not disclosed.