constellation brands vs anheuser busch

constellation brands vs anheuser busch插图

The Mexican arm of drinks company Anheuser-Busch InBev accused U.S. firm Constellation Brands in a lawsuit filed on Monday of breaching a deal on the use of theCoronabrand name by applying it to a product other than beer.

How did Constellation Brands’beer segment perform last quarter?

The beer segment is Constellation’s largest with almost $1.7 billion in revenue last quarter, up 28% from the year-ago period, and driven higher in large part because of Corona Hard Seltzer sales. The Corona brand has been a major force for growth for Constellation, first in beer, now with seltzer.

Did Constellation Brands violate licensing agreement with Grupo Modelo?

Anheuser-Busch’s Grupo Modelo contends Constellation Brands violated the licensing agreement for Corona that was signed as part of the mega brewer’s acquisition of the Mexican brewery in 2013 to satisfy antitrust concerns.

Who is Constellation Brands?

Constellation Brands is the world’s leading premium wine company that achieves success through an unmatched knowledge of wine consumers, storied brands that suit varied lives and tastes, and more than 4,400 talented employees worldwide.

Why is constellation selling its brewery in Texas?

The sale of the brewery, which is located near the Texas border, would ensure independence of supply for Crown and provides Constellation with complete control of the production of the Modelo brands for marketing and distribution in the U.S.

What is the purpose of the acquisition of Piedras Negras Brewery?

Acquisition of Piedras Negras Brewery Provides Supply Independence for Crown. Constellation’s purchase of the Piedras Negras brewery provides it with complete control over production of Corona and the Modelo brands sold in the U.S. The brewery benefits from its proximity to the U.S., as well as a continuous, high quality water supply …

How long is the Constellation contract with InBev?

AB InBev and Constellation have agreed to a three-year transition services agreement to ensure the smooth transition of the operation of the world-class brewery, which is fully self-sufficient, utilizes top-of-the-line technology and was built to be readily expanded to increase production capacity. During this 3 year timeframe, Constellation plans to invest approximately USD 400 million to expand the Piedras Negras facility, which will then enable it to supply 100% of Crown’s needs for the U.S. marketplace. Today, Piedras Negras fulfills approximately 60% of Crown’s current demand.

How many employees does Piedras Negras have?

The brewery benefits from its proximity to the U.S., as well as a continuous, high quality water supply from a mountain aquifer. The approximately 600 employees at the Piedras Negras facility will continue to be employed at the brewery by their current employer.

Where is the modelo brewery located?

The sale of the brewery, which is located near the Texas border, would ensure independence of supply for Crown and provides Constellation with complete control of the production of the Modelo brands for marketing and distribution in the U.S.

Where did the AB InBev come from?

AB InBev’s dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852.

Does Piedras Negras sell Modelo?

The Piedras Negras brewery supplies the U.S. exclusively, and its sale would not impact the growth of Modelo brands in Mexico or worldwide outside the U.S. Since announcing the combination between AB InBev and Modelo, AB InBev has been working on integration planning and reviewing initial synergy forecasts.

How does increased competitive activity affect consumer demand?

increased competitive activities in the form of pricing, advertising and promotions could adversely impact consumer demand for the company’s products and/or result in lower than expected sales or higher than expected expenses;

What is beer?

While hard seltzer is just seltzer with alcohol added, it’s been broadly accepted as an offshoot of the brewing industry. The craft beer industry’s Brewers Association trade group, for example, has even allowed brewers that make more hard seltzer than beer to still be classified as a craft brewer.

What is the Constellation beer segment?

The beer segment is Constellation’s largest with almost $1.7 billion in revenue last quarter, up 28% from the year-ago period, and driven higher in large part because of Corona Hard Seltzer sales. The Corona brand has been a major force for growth for Constellation, first in beer, now with seltzer.

Where does hard seltzer come from?

Although hard seltzer is often seen as an extension of the flavored malt beverage category because the alcohol is many times derived from malted barley, other times the alcohol comes from fermented sugar, which is how Corona Hard Seltzer is made.

Why is beer called Internal Revenue Code?

This is why non-malt, sugar-based beverages (sake, for instance) are referred to as "Internal Revenue Code beer" or "Food and Drug Administration beer," because they have excise taxes imposed on them and the FDA regulates their labeling (hence nutrition labels on seltzer). So Modelo’s argument against Constellation isn’t so cut and dry.

What is the most popular hard seltzer?

Its most popular hard seltzer is Bud Light, which has grown to an almost 10% share of the market, good enough for third place.

Is seltzer a beer?

Yet federal Tax and Trade Bureau regulations classify hard seltzer as "beer" because it is produced from either brewed malt or brewed sugar, though under the Federal Alcoholic Administration Act, a malt beverage must contain fermented barley malt and hops.

Is hard seltzer a hottest beer?

While actual beer sales continue to decline, hard seltzer remains one of the hottest adult beverages on the market, growing at triple-digit rates. So maintaining a competitive advantage is imperative, even if it means going to court.

What is the difference between Boston Beer Company and Molson Coors?

The Boston Beer Company is a craft brewer producing and selling alcohol beverages. Molson Coors Beverage Company is a beer company that distributes and brews beer brands. Anheuser-Busch InBev is a company engaging in the production and distribution of beer, alcoholic beverages, and soft drinks worldwide.

What is Molson Coors?

Molson Coors Beverage Company is a beer company that distributes and brews beer brands.

What is the difference between Brown Forman and Diageo?

Brown-Forman Corporation is a spirit and wine company. Diageo. Diageo is a multinational premium drinks business with a collection of beverage alcohol brands across spirits, beer, and wine. Heineken. Heineken is a global brewer and distributor of beer and cider.

What is beam suntory?

Beam Suntory is a spirits company in the U.S. Ste. Michelle Wine Estates. Washington State’s founding winery. Trinchero Family Estates. Winemaking is a collage of art, science, intuition and tradition.

What is an AB Inbev?

Anheuser-Busch InBev (also known as AB InBev) is a company engaging in the production and distribution of beer, alcoholic beverages, and soft drinks.

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