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STZ

Constellation Brands, Inc.

5/24/2013, 4:39 AM ET

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Friday, May 17, 9:13 AM Big beer companies including Anheuser-Busch InBev (BUD), Molson Coors (TAP), SABMiller (SBMRY.PK), Heineken (HINKY.PK), and Constellation Brands (STZ) support legislation that they say would take away some of the advantages craft brewers have on excise taxes. While separating the big boys like A-B from smaller local players is pretty easy, things get more confusing when trying to label brewers such as Boston Beer (SAM) and Craft Brew Alliance (BREW) with indy roots. What to watch: Though sluggish beer volume in the U.S. is a major concern, the battle over excise taxes could be just as big for bottom lines. Comment! [Consumer, Global & FX]
Thursday, May 16, 9:38 AM Stifel Nicolaus is out with sector notes and attendant upgrades for some names in the alcoholic beverage industry. Rundown: analyst Mark Swartzberg takes Molson Coors (TAP +1.8%) to Buy from Hold and raises his FY13 and FY14 EPS estimates to $3.93 and $4.36 respectively (from $3.91 and $4.28); Beam (BEAM +1.4%) gets a Buy from Hold bump and a price target of $80; Constellation Brands (STZ +3.1%) moves to Buy from Hold (price target $64, see earlier ) on "attractive multiples" relative to peers and (amusingly) a "portfolio of brands that is [characterized] less and less as 'Corona and those other brands.'" Comment! [Consumer]
Thursday, May 16, 8:51 AM Stifel Nicolaus upgrades Constellation Brands (STZ) to a Buy rating from Hold and places a $64 price target on shares. Analysts with the firm think valuation is attractive at current levels with the company's higher-end beers outperforming peers. STZ +1.5% premarket. Comment! [Consumer, On the Move]
Tuesday, May 7, 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 [Consumer, Global & FX, M&A]
Friday, April 19, 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) Comment! [Consumer, M&A]
Wednesday, April 10, 8:09 AM More on Constellation Brands' (STZ) FQ4: Organic sales rose 8% as gains in price and product mix contributed. The acquisition of Mark West and Ruffino complemented the company's organic growth. Constellations Brands expects to gain market share in FY14 across beer, wine, and spirits businesses and sees EPS of $2.55-$2.85 vs. consensus $2.75. (PR) Comment! [Earnings, Consumer]
Wednesday, April 10, 8:04 AM Constellation Brands (STZ): FQ4 EPS of $0.47 beats by $0.02. Revenue of $696M (+11% Y/Y) beats by $29.43M. (PR) Comment! [Earnings, Breaking News, Consumer]
Wednesday, April 10, 12:05 AM Notable earnings before Wednesday’s open: AH, FAST, FDO, JKS, KMX, PGR, STZ, TITN Comment! [Earnings]
Tuesday, April 9, 5:30 PM Notable earnings before Wednesday’s open: AH, FAST, FDO, JKS, KMX, PGR, STZ, TITN 1 Comment [Earnings]
Monday, April 8, 8:01 AM Shares of Constellations Brands (STZ) move up 4.2% in premarket trading after a tentative agreement is struck between the DOJ and Anheuser-Busch InBev over the Grupo Modelo buyout. The deal includes A-B offering to sell an additional $2.9B of assets to Constellation Brands in order to win over regulators. Comment! [Consumer, On the Move]
Friday, April 5, 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 [Consumer, M&A]
Friday, April 5, 12:59 PM Is the Justice Department Constellation Brands' (STZ -1%) best friend at the moment? The final sticking point for an agreement between Anheuser-Busch InBev (BUD -1.7%) and the DOJ over the purchase of Grupo Modelo is reported to be assurances that firm plans to see Constellation boost production at the Piedras Negras plan by 70% are in place to keep the U.S. flowing in Corona and other Modelo brands. The regulatory pressure could give Constellation a bit of leverage to gain favorable terms from A-B. Comment! [Consumer, Global & FX]
Friday, April 5, 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. Comment! [M&A, Consumer]
Friday, March 15, 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 [Consumer, M&A, On the Move]
Sunday, March 10, 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 [M&A, Consumer]
Thursday, March 7, 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 [M&A, Financials]