US-based Constellation Brands, the world's largest wine producer, plans to consolidate its distribution and increase storage and bottling capacity in the UK, in support of its growing business in Europe.
The parent company of such brands as Stowells, Hardys, Banrock Station, Robert Mondavi and more recently, Jackson-Triggs (through its acquisition of Vincor in June 2006) say these logistical changes are designed to reduce manufacturing and transport costs for Constellation Europe.
The company's national distribution centre in Bristol currently handles approximately 24m bottles; when the new facility opens in 2009, total capacity will be at least 53m bottles. Sites are still under consideration.
In Australia, Constellation's Hardy Wine Company plans to buy out some of its existing grape and processing contracts. Over time, Constellation hopes to save over US$15m annually.
Have your say... To post your comment on this story, email us at news@decanter.com, making sure the relevant headline is in the subject field
Mergers and acquisitions: good-bye democracy, competition, and attention to detail; hello capitalism, corruption, lowered quality through massive red tape…Why do the public continue to support crap? It can't always be about savings, because guaranteed, your savings is watered down and/or manipulated (again) crap. Wake up!
Scott Cameron, Texas
Register on decanter.com absolutely free for news alerts delivered direct to your email inbox, and our fortnightly newsletter with advance notice of what’s coming up in Decanter magazine, offers, competitions and more.
PLUS registration is a one-stop shop for the Decanter magazine Archive and Decanter Fine Wine Tracker.