Constellation Comments That GModelo Legal Action Has No Merit
VICTOR, N.Y., Dec. 16 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), the world's leading wine company, announced that it is aware of a lawsuit filed Tuesday, Dec. 15, 2009 in New York federal court by GModelo, an indirect subsidiary of Grupo Modelo. However, Constellation Brands has not been formally served with the lawsuit.
Constellation and GModelo are partners in Crown Imports LLC, a 50/50 joint venture which commenced in January 2007. Crown's board of directors is comprised of four directors from each parent company. The initial term of the joint venture extends through the calendar year of 2016.
At issue is the funding by the partners for incremental Crown promotion and marketing spending for calendar year 2010. Previously, the incremental spending in question was provided by GModelo and was agreed upon once again for the 2010 business plan. The funding at issue is not material to Constellation's overall financial position. Constellation believes that the claims lack merit and will defend its position.Crown is not a party to this lawsuit and Constellation believes that Crown remains fully engaged in executing against the plan for calendar year 2010 and growing its business through the entire initial term of the contract. About Constellation Brands Constellation Brands is the world's leading wine company that achieves success through an unmatched knowledge of wine consumers paired with storied brands that suit varied lives and tastes. With a broad portfolio of widely admired premium products across the wine, beer and spirits categories, Constellation's brand portfolio includes Robert Mondavi, Hardys, Clos du Bois, Blackstone, Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka. Constellation Brands (NYSE: STZ and STZ.B; ASX: CBR) is an S&P 500 Index and Fortune 1000® company with more than 100 total brands in our portfolio, sales in about 150 countries and operations in approximately 45 facilities. The company believes that industry leadership involves a commitment to our brands, to the trade, to the land, to investors and to different people around the world who turn to our products when celebrating big moments or enjoying quiet ones. We express this commitment through our vision: to elevate life with every glass raised. To learn more about Constellation Brands and its product portfolio visit the company's web site at www.cbrands.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV