Constellation invests in European operations

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.

Written by Decanter staff