2016 COMPANY profile - Constellation Brands

2016 COMPANY
profile
We build brands that people love.
RICHARD SANDS
Chairman of the Board
ROB SANDS
President and CEO
We are passionate producers of iconic beer, wine and spirits brands that
consumers love. If you have taken a moment in life to unwind with a bottle of
beer, toast with a glass of wine, or celebrate with a cocktail, chances are that
you have shared that moment with Constellation Brands. Those occasions are
why we are in business - to enhance life experiences and events for a world of
diverse consumers, to provide quality and long term value to our shareholders and
customers. Constellation Brands’ vision is to elevate life with every glass raised.
IN THIS DOCUMENT
Corporate Overview
Brand Overview
Financial Overview
Corporate Social
Re s p o n s i b i l i t y
W i n e r y / P ro d u c t i o n
Fa c i l i t i e s I n f o r m a t i o n
Corporate/Operating
Company Information
In 1945, Marvin Sands, our father, established Canandaigua Industries in New York’s Finger
Lakes region with just eight employees. Since that humble beginning, Constellation has grown to
become the #1 multi-category alcohol company in the U.S., the largest premium wine company in the
world and the third largest beer company in the U.S.
We can pinpoint two aspects for this remarkable transformation. The first is the spirited and
entrepreneurial employees who work with integrity and a dedication to quality every day. The second is
a culture and set of core values that have been fundamental to the company since its inception. These
values, and the employees who live them daily, have created a foundation from which we have grown
to become an industry leader. They also serve as the basis for our strong commitment to corporate
social responsibility. We respect the land by developing sustainable business practices, give back to
local communities through corporate giving and community involvement and encourage responsible
consumption of beverage alcohol products not just because doing so is good business, but because it
is simply the right thing to do.
Today, Constellation’s focus on providing consumers around the globe with premium, highquality beverage alcohol products positions us well to continue on a path of growth and success while
enhancing shareholder value. With an iconic portfolio of brands that consumers love, collaborative
and dynamic employees, and a commitment to our culture and core values, Constellation is
committed to being good stewards of an extraordinary legacy started more than seven decades ago.
Sincerely,
Richard Sands
Chairman of the Board
Rob Sands
President and CEO
C O M PA N Y
+ BRAND
OVERVIEW
Constellation Brands (NYSE: STZ and STZ.B) is a leading international producer and marketer of beer,
wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. Constellation is
a Fortune 500® company and one of the top performing stocks in the S&P 500 Consumer Staples
Index. Constellation is the No.3 beer company in the U.S. with high-end, iconic imported brands
such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. The company’s
beer portfolio includes Ballast Point, one of the most awarded craft brewers in the U.S. Constellation
is also the world’s leader in premium wine, selling great brands that people love, including Robert
Mondavi, Clos du Bois, Kim Crawford, Meiomi, Mark West, Franciscan Estate, Ruffino and JacksonTriggs. The company’s premium spirits brands include SVEDKA Vodka and Casa Noble Tequila.
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to
brand building, our trade partners, the environment, our investors and to consumers around the
world who choose our products when celebrating big moments or enjoying quiet ones. Founded in
1945, Constellation has grown to become a significant player in the beverage alcohol industry with
more than 100 brands in its portfolio, sales in approximately 100 countries, over 40 facilities and
approximately 9,000 talented employees. We express our company vision: to elevate life with every
glass raised.
Constellation Brands is:
• the leading multi-category beverage alcohol supplier in the U.S.
• the leading beer importer and #3 beer company in the U.S.
• the leading premium wine company in the world
• the leading wine company in Canada
• a leading supplier of wine from New Zealand and Italy in North America
Please visit www.cbrands.com to view Constellation’s complete brand portfolio
FINANCIAL
OVERVIEW
For the years ended February 28 or 29
(in millions, except per share data)
2016
2015
2014
2013
2012
Income Statement Reported Results
$ 7,223.8
$ 6,672.1
$ 5,411.0
$ 3,171.4
$ 2,979.1
Net sales
6,548.4
6,028.0
4,867.7
2,796.1
2,654.3
Operating income
1,765.1
1,500.2
2,437.7
522.9
486.5
51.1
21.5
87.8
233.1
228.5
1,054.9
839.3
1,943.1
387.8
445.0
5.18
4.17
9.83
2.04
2.13
$ 6,548.4
$ 6,028.0
$ 4,867.7
$ 2,796.1
$ 2,654.3
1,865.6
1,583.0
1,168.3
556.7
540.0
Sales
Earnings from unconsolidated investments
Net income attributable to CBI
Diluted net income per share attributable to CBI
Income Statement Comparable Results
Net sales
Operating income
Earnings from unconsolidated investments
Net income attributable to CBI
Diluted net income per share attributable to CBI
26.6
21.5
87.9
234.1
228.5
1,106.5
893.0
641.7
415.9
487.8
5.43
4.44
3.25
2.19
2.34
$ 1,413.7
$ 1,081.0
$ 826.2
$ 556.3
$ 784.1
(891.3)
(719.4)
(223.5)
(62.1)
(68.4)
522.4
361.6
602.7
494.2
715.7
Cash Flow Data
Net cash provided by operating activities
Purchases of property, plant and equipment
Free cash flow
C O R P O R AT E
SOCIAL
RESPONSIBILITY
Fo r m o re i n f o r m a t i o n o n o u r
CSR initiatives, please visit
w w w. c o n s t e l l a t i o n c s r. c o m .
Corporate Social Responsibility (CSR) has been woven into our culture and core values at
Constellation Brands since we began doing business in 1945. We believe that our long-term success
is tied directly to our ability to make a positive difference in our communities.
The mission of our CSR program is to elevate life through our commitment to care for the
environment, inspire communities and promote responsible consumption of our products. To
accomplish this, we have three primary focus areas: Giving Back, Social Responsibility, and
Sustainability.
Sustainability
Our company is based in agriculture, so minimizing our environmental impact is essential to our
long-term success. Just a few examples of how Constellation is minimizing its impact on the
environment include:
• In 2014 and 2015, we were named to the CDP’s (formerly the Carbon Disclosure Project) leadership
index, which recognizes S&P 500® companies that are leaders in the depth and quality of climate
change data disclosed to investors in the global marketplace.
• Our brewery in Nava, Mexico has highly efficient water and wastewater treatment systems, reuses
about 26% of incoming water, and has a water efficiency rate of 3.32 liters of water per liter of
product—one of the best in the industry.
• Our production facilities diverted 93% of total waste from landfill in FY15 through recycling, reuse
and composting initiatives.
Giving Back
Our founder, Marvin Sands, made giving back an essential component of our values. As we have
grown, this culture has been enhanced by the people and companies that have become part of the
Constellation family.
• Nourishing Neighbors: One of the causes that our employees are most passionate about is food
insecurity, and through this initiative employees are given paid time off to volunteer, and together
with the company, donate food and money to help fight hunger in our communities.
• Community Giving: Our community giving efforts focus on arts and culture, health care, and
education. These areas are important to our company and our employees, and we support a
number of organizations around the world with monetary and in-kind support.
• Employee Match: We match employee contributions, dollar-for-dollar, to the eligible charity of their
choice once per year. This allows Constellation to contribute to causes our employees are most
passionate about.
Social Responsibility
We are firmly committed to producing, advertising, and promoting our products in a responsible
manner. We strongly support efforts to eliminate underage consumption of beverage alcohol and
drunk driving. Our social responsibility efforts are focused in three areas: our own practices, our
community outreach, and advocating our beliefs.
• We are actively involved in initiatives that address the societal impact of the misuse of beverage
alcohol and promotes responsible drinking, such as The Foundation for Advancing Alcohol
Responsibility, Techniques for Effective Alcohol Management (TEAM) Coalition and the We Don’t
Serve Teens campaign.
• Our Global Code of Responsible Practices for Beverage Alcohol Advertising and Marketing provides
the fundamental framework for responsible brand advertising and marketing that ensures our
messages are directed at legal, drinking-age consumers. Compliance with the code is mandatory
across Constellation companies and others involved with the promotion of our brands.
PRODUCTION
FA C I L I T I E S
United States
California
Bedford Winery, Napa
Clos du Bois Winery, Geyserville
Dunnewood Vineyards, Ukiah
Estancia Winery, Soledad
Franciscan Oakville Estate, Rutherford
Gonzales Winery, Gonzales
Linda Vista Brewery, San Diego
Little Italy Brewery, San Diego
Miramar Brewery, San Diego
Mission Bell Winery, Madera
Mt. Veeder Winery, Napa
R.H. Phillips Winery, Esparto
Ravenswood Wineries, Sonoma
Robert Mondavi Winery, Oakville
Scripps Ranch Brewery, San Diego
SIMI Winery, Healdsburg
Turner Road Vintners Wineries, Lodi/Woodbridge
Wild Horse Winery, Templeton
Woodbridge Winery, Acampo
New York
Canandaigua Winery, Canandaigua
Washington
The Hogue Cellars, Prosser
Canada
Alberta
The Black Velvet Distilling Co., Lethbridge
British Columbia
Inniskillin Okanagan Winery, Oliver
See Ya Later Ranch, Okanagan Falls
Sumac Ridge Estate Winery & Vineyard,
Summerland
Oliver Winery, Oliver
Ontario
Inniskillin Winery & Vineyard,
Niagara-on-the-Lake
Jackson-Triggs Estate Winery,
Niagara-on-the-Lake
Niagara Cellars, Niagara Falls
Québec
Constellation Brands Québec, Rougemont
Wine Kits
RJ Spagnol’s, Kitchener, Ontario
Italy
Poggio Casciano Winery, Bagno a Ripoli,
San Polo, Florence
Santedame Winery, Castellina in Chianti, Siena
Gretole Winery, Castellina in Chianti, Siena
La Solatia Winery, Monteriggione, Siena
Greppone Mazzi Winery, Montalcino, Siena
Pontassieve Winery, Pontassieve
Mexico
Compañía Cervecera de Coahuila, Nava, Coahuila
Industria Vidriera de Coahuila, Nava, Coahuila
New Zealand
Selaks Winery, Hawkes Bay, North Island
Drylands Winery, Marlborough, South Island
Riverlands Winery, Marlborough, South Island
Nobilo Winery, Huapai, Auckland, North Island
C O R P O R AT E H E A D Q U A R T E R S
Constellation Brands, Inc.
207 High Point Drive, Building 100
Victor, NY 14564
888-724-2169
www.cbrands.com
OTHER MAIN
OFFICES
Beer Division
1 South Dearborn Street, Suite 1700
Chicago, IL 60603
312-873-9600
17802 IH-10 West, Suite 100
San Antonio, TX 78257
210-877-8500
Wine and Spirits Division
1255 Battery Street, Suite 300
San Francisco, CA 94111
415-912-3701
235 North Bloomfield Road
Canandaigua, NY 14424
800-836-9463
Canada
441 Courtneypark Drive East
Mississauga
Ontario, Canada, L5T 2V3
800-265-9463
New Zealand
45 Station Road
Huapai, Auckland
New Zealand
011-649-412-6666
www.constellationnz.com