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Constellation Brands announces US$20m expansion

Constellation Brands has announced that it is investing $20m to buy more land and expand winemaking facilities to support rising sales of its premium brands over the medium-term.

Constellation Brands said this week that it is in the process of acquiring an extra 750 acres of land in the Lodi Delta area of San Joaquin County, as part of the investment.

It intends to plant Pinot Noir, Chardonnay and Cabernet Sauvignon, and envisages that the extra supply will be used to support its Mark West, Woodbridge by Robert Mondavi, Robert Mondavi Private Selection and Clos du Bois brands.

‘The need for more land, fermenters, tanks and bottling lines is a direct result of the success of our brands,’ said Jay Wright, president of the US wine group’s wine and spirits division.

As well as acquiring land, Constellation plans to install stainless steel vats with a total storage of 1m gallons at its Clos du Bois winery in Sonoma County. This will be done my mid-2014.

It will also install a new Tetra Pak bottling line at its Turner Road Vintners winery in San Joaquin County, demonstrating its commitment to selling wine in cartons. The firm is also increasing bag-in-box packaging capacity by 50% at its Mission Bell Winery in Madera County.

Constellation will report its half-year financial results on 3 October.

Written by Chris Mercer

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