2015 CORPORATEprofile - Constellation Brands

2015 CORPORATE
profile
We build brands that people love.
RICHARD SANDS
Chairman of the Board
ROB SANDS
President and CEO
Constellation Brands’ vision is to elevate life with every glass raised. As one of the
world’s leading producers and marketers of beverage alcohol products, we offer
an unsurpassed portfolio of high-quality, consumer-preferred brands across the
wine, beer, and spirits categories. We are in business to enhance life experiences
and occasions for a world of diverse consumers, provide quality and long-term
value to our shareholders and retail and distributor customers, and make a positive
difference in the communities in which we live and work.
I N T H I S D O C U M E N T:
Corpor ate O ver view
Brand Over view
Financial Over view
Corpor ate Social
Responsibilit y
Winer y/Production
Facilities Infor mation
Corpor ate/Oper ating
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 leading 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,
high-quality beverage alcohol products positions us well to continue on a path of growth and
success while enhancing shareholder value. With a portfolio that includes some of the best
brands in the industry that consumers prefer and trust, 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 six decades ago.
Sincerely,
Richard Sands
Chairman of the Board
Rob Sands
President and CEO
C O M PA N Y
+ BR AND
OV ERV IE W
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 the number three beer company in the U.S. with high-end, iconic, imported
brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico.
Constellation is also the world’s leader in premium wine selling great brands that people love
including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan
Estate, Ruffino and Jackson-Triggs. The company’s premium spirits brands include SVEDKA
Vodka and Black Velvet Canadian Whisky.
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, about 40 facilities and approximately 6,300 talented employees. We express our
company vision: to elevate life with every glass raised.
Constellation Brands is:
• the leading multi-category beverage alcohol company in the U.S.
• the world’s leading premium wine company
• the #3 beer company in the U.S.
• the leading premium wine company in the U.S.
• the leading wine company in Canada
• the leading wine supplier in New Zealand
Please visit www.cbrands.com to view Constellation’s complete brand portfolio.
FINANCIAL
OV ERV IE W
For the Years Ended February 28 or 29
(in millions, except per share data)
2014
20132012 2011 2010
Income Statement Reported Results
Sales
$ 5,411.0
$ 3,171.4
$ 2,979.1
$ 4,096.7
$ 4,213.0
Net sales
4,867.7
2,796.1
2,654.33,332.0 3,364.8
Operating income
2,437.7
522.9
486.5
502.5311.5
Equity in earnings of equity method investees 87.8
233.1
228.5243.8 213.6
Net income (loss)
1,943.1
387.8
445.0559.5 99.3
Diluted earnings per share (loss)
9.83
2.04 2.13 2.62 0.45
Income Statement Comparable Results
Net sales
$4,867.7
$2,796.1
$ 3,332.0
Operating income
1,168.3
556.7
540.0
$ 3,364.8
$ 3,364.8
533.7560.2
Equity in earnings of equity method investees
87.9
234.1
228.5
244.4239.0
Net income
641.7
415.9
487.8
408.0373.3
Diluted earnings per share
3.25
2.19
2.34
1.911.69
Cash Flow Data
Net cash provided by operating activities
$826.2
Purchases of property, plant, and equipment
(223.5)
$556.3
$784.1
$ 619.7
(62.1)
(68.4)
$ 402.6
(89.1)(107.7)
Free cash flow
602.7
494.2715.7530.2 294.8
C O R P O R AT E
SOCIAL
RE SPONSIBILIT Y
At Constellation, being a responsible company is nothing new. Corporate Social Responsibility (CSR)
has been woven into our company’s culture and core values since our founding, and the idea behind
these efforts has always been the same – we have a responsibility to care for the land, people and
communities where we live and work.
Today, Constellation’s global CSR platform is divided into three pillars:
We produce the most solar
energy in the U.S. wine
industry,
Sustainability
As an agriculture-based company, Constellation relies on the land for its continued growth and
success. Just a few examples of how Constellation is minimizing its impact on the environment
include:
• Constellation expanded its solar energy initiative in the U.S., and now produces the most solar
energy in the U.S. wine industry.
• A comprehensive global carbon footprint analysis established and reported to the Carbon Disclosure
Project annually, which helps identify strategies for emission reductions.
• All our California wineries and vineyards are certified by the California Sustainable Winegrowing
Alliance, and all our wineries in New Zealand are members of Sustainable Winegrowing New
Zealand.
Giving Back
Constellation Brands has a long tradition of giving back to the communities where our employees live
and work. As we have grown, this culture has been enhanced by the strong philanthropic traditions of
the people and companies that have become part of the Constellation family. What truly brings to life
our commitment to giving back is the passion shown by our employees.
•
C
ommunity Giving: Constellation’s giving efforts are focused on three areas: health care, arts and
culture, and education, because these areas are important to our company and to our employees.
We have a Giving Back team with representation from all our geographies so we can better identify
and give to causes that are important to our local communities.
•
E
mployee Match Program: The Employee Match Program is a great benefit that helps employees
double their contribution to causes that matter to them. The program has donated more than
$500,000 to local communities since it began.
•
N
ourishing Neighbors: This initiative harnesses the passion of our employees to fight hunger in their
communities, a cause our employees around the world are particularly passionate about. Nourishing
Neighbors helps our employees fight hunger in three ways – by giving time, food, or money, and
includes paid time off to volunteer at a local food bank during a company-wide “week of giving back.”
Social Responsibility
As a beverage alcohol industry leader, Constellation takes its commitment to promote safe and
responsible drinking very seriously. The company is actively involved in a number of initiatives that
address the societal impact of the misuse of beverage alcohol and supports a number of organizations
that promote responsible drinking, such as The Foundation for Advancing Alcohol Responsibility in the
U.S., which targets drunk driving and underage drinking.
Additionally, the company abides by its Global Code of Responsible Practices for Beverage Alcohol
Advertising and Marketing and is an active participant in industry self-regulatory efforts to ensure
appropriate marketing messages are directed at legal-drinking-age consumers.
PRODUCTION
FA C I L I T I E S
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
Le Clos Jordanne, Jordan
Niagara Cellars, Niagara Falls
Québec
Constellation Brands Québec, Rougemont
Wine Kits
RJ Spagnol’s, Delta, British Columbia
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
New Zealand
Selaks Winery, Hawkes Bay, North Island
Drylands Winery, Marlborough, South Island
Kim Crawford Winery, Marlborough, South Island
Nobilo Winery, Huapai, West Auckland, North
Island
United States
California
Bedford Winery, Napa
Clos du Bois Winery, Geyserville
Dunnewood Vineyards, Ukiah
Estancia Winery, Soledad
Franciscan Oakville Estates, Rutherford
Gonzales Winery, Gonzales
Mission Bell Winery, Madera
Mt. Veeder Winery, Napa
Ravenswood Wineries, Sonoma
Robert Mondavi Winery, Oakville
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
CORPORATE HEADQUARTERS
Constellation Brands, Inc.
207 High Point Drive, Building 100
Victor, NY 14564
1-888-724-2169
www.cbrands.com
OTHER MAIN
OFFICES
Beer Division
1 South Dearborn Street, Suite 1700
Chicago, IL 60603
312-873-9600
United States
1255 Battery Street, Suite 300
San Francisco, CA 94111
235 North Bloomfield Road
Canandaigua, NY 14424
17802 IH-10 West, Suite 100
San Antonio, Texas 78257
New Zealand
45 Station Road
Huapai, Auckland
New Zealand
011-649-412-6666
www.constellationnz.com
Canada
441 Courtneypark Drive East
Mississauga
Ontario, Canada, L5T 2V3
1-800-265-9463
www.cbrands.ca