Constellation strikes Young’s US deal

Constellation Brands has announced the signing of a multi-year distribution agreement with Young’s Market Company and its affiliates as Constellation’s exclusive distributor in the US states of Alaska, Washington, and Oregon.

Young’s, a recognised market leader in the Pacific Northwest, has a longstanding business relationship with Constellation.

Constellation is currently Young’s largest supplier in volume in the Pacific Northwest, representing more than an estimated one million cases annually.

The agreement marks the latest phase of Constellation’s ongoing realignment of its distributor network which was announced on 23 July.

The Young’s distribution agreement brings the total number of states benefiting from this new go-to-market strategy to 22, with 8 potential markets remaining.

The decision to consolidate the majority of Constellation’s U.S. wine and spirits business to one distributor per market was made with the goal of improving organic growth, creating distributor teams focused exclusively on Constellation’s portfolio, and improving the coordination of marketing and promotional programs to support the brands.

Rob Sands, president and chief executive officer at Constellation Brands, said: “Our U.S. sales force and Young’s sales force are completely aligned in these markets, which will ensure our products are in the right place and at the right price.

“Young’s has been an important part of Constellation’s success. We are excited to enter this new phase of our relationship and grow the business together."

Christopher Underwood, CEO of Young’s Market Company, added: “We believe that the expansion of our relationship in these markets is a reflection of the mutual respect that Young’s and Constellation have for one another and we look forward to maintaining that relationship well into the future.”

Alan Lodge, 12.10.2009