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Constellation Brands, Inc. (STZ)

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  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
    | 24 Comments
  • May. 23, 2014, 3:47 AM
    • Treasury Wine Estates (TSRYF) and Bright Food Group have dismissed a report that the Chinese company is in talks to buy the Australian vintner.
    • The denials come after Treasury Wine rejected a A$3.1B ($2.9B) proposal from U.S. private-equity firm KKR (KKR) earlier this week.
    • Treasury has also dismissed reports recently that it has received separate approaches from Constellation Brands (STZ) and France's Pernod Ricard (PDRDY) for Treasury's U.S. operations.
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  • Jun. 4, 2013, 1:25 PM
    Anheuser-Busch InBev (BUD +0.3%) announces it completed its combination with Grupo Modelo and holds 95% of Grupo's shares following a protracted tender offer. The deal with Constellation Brands (STZ -2%) for rights to brands in the U.S. will close on June 7.
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  • May. 7, 2013, 2:57 PM
    Craft brewery execs say they're increasingly brushing back offers from big brewers and P-E firms to consider selling their business. The buzz is over craft beer sales which are growing at a double-digit rate, while global brewery sales continue to move up at a snail's pace. What's next: As Anheuser-Busch InBev (BUD +0.9%), SABMiller (SBMRY.PK), Molson Coors (TAP -0.9%), and even winemaker Constellation Brands (STZ) get even thirstier for growth, will craft brew companies continue to resist the temptation to cash in?
    | 5 Comments
  • Apr. 19, 2013, 10:37 AM
    Anheuser-Busch (BUD +1.7%) has reached a deal with the DOJ regarding its acquisition of Mexican beer giant Grupo Modelo, Bloomberg reports. A consent decree will reportedly be filed today. The deal requires Modelo to sell its U.S. brands, as well as a Mexican brewery, to Constellation Brands (STZ +1.7%). Anheuser also gives up an option to buy back a stake in U.S. Modelo distributor Crown Imports, leaving Crown fully owned by Constellation. Constellation says it will invest $400M to expand the Mexican brewery. (previous)
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  • Apr. 5, 2013, 6:35 PM
    Anheuser-Busch InBev (BUD), Grupo Modelo and Constellation Brands (STZ) confirm a tentative agreement with the U.S. Department of Justice to allow their three-way beer deal to get approved. BUD says the new agreement, which isn’t finalized, would be “substantially in line" with revised terms that give more control of Modelo's U.S. beer brands to STZ.
    | 1 Comment
  • Apr. 5, 2013, 4:27 AM
    AB InBev (BUD) is reportedly close to agreeing to a settlement with the Department of Justice that would persuade the DOJ to approve the company's $20.1B bid to take full control of Modelo, with an announcement set to be made next week. The sides have until Tuesday to update a federal judge on their progress but might request a short extension.
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  • Mar. 15, 2013, 6:07 PM
    Constellation Brands (STZ) +3.1% AH as AB InBev (BUD), Grupo Modelo and the Justice Department ask a federal court to allow more time for settlement talks that could resolve a government lawsuit challenging the companies' planned merger. After DoJ sued to stop the deal, BUD agreed to sell a Modelo brewery in Mexico to STZ for $2.9B and grant STZ perpetual rights for Corona and other Modelo brands in the U.S.
    | 1 Comment
  • Mar. 10, 2013, 4:09 AM
    The Department of Justice is reportedly examining Constellation Brands' (STZ) intention to boost brewing capacity by 70% at Modelo's Piedras Negras plant in Mexico to see if the plan will ensure strong competition should the DOJ approve AB InBev's acquisition of Modelo. AB InBev has offered to sell the plant to Constellation as it looks to gain approval for its $20.1B bid to buy full control of Modelo.
    | 1 Comment
  • Mar. 7, 2013, 5:37 AM
    The WSJ highlights how Bank of America (BAC) made a net profit of around $1.14M on trading options in Constellation Brands (STZ) in the summer, around the time the latter said it was acquiring Crown Imports from AB InBev (BUD) as part of the Belgian brewer's acquisition of full control of Modelo. BofA was an adviser on the Modelo deal and played a crucial role in the funding of both transactions. BofA says that the Chinese wall between different parts of the bank was maintained.
    | 5 Comments
  • Feb. 21, 2013, 3:23 AM
    AB InBev (BUD) is in talks with the Department of Justice to allay the latter's competition concerns over the company's proposal to take full control of Modelo, with the sides yesterday asking a court to delay the DOJ's antitrust suit against the deal until March 19. The request came after AB InBev offered further concessions, including selling Modelo's Piedras Negras brewery to Constellation Brands (STZ).
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  • Feb. 14, 2013, 3:49 AM
    AB InBev (BUD) amends the terms of its $20.1B proposal to acquire the 50% of Modelo it doesn't own as it looks to allay U.S. antitrust concerns. AB InBev says it will sell the Mexican company's Piedras Negras brewery to Constellation Brands (STZ) and give the latter perpetual rights to sell Corona and other Modelo brands in the U.S.  in a deal worth $2.9B. And as originally planned, Constellation will buy the 50% of Crown Imports it doesn't own from Modelo for $1.85B. (PR)
    | 4 Comments
  • Jun. 29, 2012, 5:49 AM
    Constellation Brands (STZ) agrees to purchase the 50% of Crown Imports that it doesn't own for $1.85B in a deal that comes in lockstep with A-B InBev's (BUD) $20.1B acquisition of Grupo Modelo. Crown is a JV between Modelo and Constellation to import Corona into the U.S. - the sale of 50% of Crown is seen as an attempt to avoid antitrust concerns about the larger deal. (PR)
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  • Jun. 28, 2012, 3:46 PM
    Anheuser-Busch InBev (BUD +0.4%) plans to announce as early as tomorrow that it will buy out the remaining stake of Grupo Modelo that it doesn't own for around $15B in cash, according to inside sources. Bankers are reported to be putting the final touches on the agreed-upon deal. (Previous: A-B/Grupo ripple effect, impact on STZ)
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  • Jun. 25, 2012, 11:05 AM
    Beer industry shakeup: SABMiller (SBMRY.PK) trades 2.4% lower in London after Anheuser-Busch InBev (BUD +0.8%) closes in on a deal to acquire Mexican brewer Grupo Modelo for more than $12B. A deal would also bring about an even closer relationship between A-B InBev and Constellation Brands (STZ +13.5%) through an existing joint venture between Modelo and Constellation over distribution. Shares of BUD are currently halted pending news.
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Company Description
Constellation Brands Inc is an international beverage alcohol company with many of its products recognized as leaders in their respective categories and geographic markets. It is a multi-category supplier (beer, wine & spirits) of beverage alcohol in US.