Constellation Picks Up National Distribution Of Modelo Brands In U.S.

August 1, 2006
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Constellation Picks Up National Distribution Of Modelo Brands In U.S.

Grupo Modelo SA de CV, maker of Corona and other Mexican beer products, has tapped Constellation Brands to take over full distribution of its products in the United States. Distribution previously was split between Constellation’s Barton Beers division and San Antonio, Texas-based Gambrinus Co.
The companies will create a joint venture for the purpose of importing and marketing Modelo’s beer portfolio in the United States and Guam for a 10-year period, beginning in January 2007. The board of the new company will consist of directors from Grupo Modelo and Constellation Brands, including Grupo Modelo Chairman and Chief Executive Officer Carlos Fernández and Constellation Brands Chairman and Chief Executive Officer Richard Sands. It will be headquartered in Chicago and led by Bill Hackett, currently president of Barton Beers. Constellation imports St. Pauli Girl and Tsingtao in the United States, and those brands also will be part of the joint venture.
“This agreement allows Grupo Modelo to move to a single importer, which will create strategic alignment across the nation and the ability to create even more growth in one of the world’s most dynamic beer markets,” Fernández said of the announcement.

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