Constellation Brands, Inc. announced today that it is investing more than $20 million in several of its California wineries and vineyard operations to expand its growing, crushing, fermenting, storing and bottling capacities. The investment is attributable to several factors, including the increased demand for the company’s brands and creating additional efficiencies with in–house and state-of-the-art technologies.
“The need for more land, fermenters, tanks and bottling lines is a direct result of the success of our brands,” says Jay Wright, president, Wine and Spirits Division, Constellation Brands. “We see a bright future for our California brands and are committed to ensuring that we can meet consumer demand as we fulfill our mission to build brands that people love.”
The demand for additional capacity is driven by the success of Constellation’s strong premium portfolio which includes Rex Goliath, Black Box, Woodbridge by Robert Mondavi, Clos du Bois and Mark West wines. All of these brands have experienced positive growth this year, according to industry sources.
“We are continuously looking to improve our operations and have done a great job over the last several years to optimize the efficiency of our many California vineyards, wineries and facilities while at the same time maintaining the award-winning quality of our wine,” says Greg Fowler, senior vice president, Operations, Constellation Brands. “Increasing capacity from grape to glass and investing in state-of-the-art technology is a wise investment that is not only good for Constellation Brands, but good for the local economies where we live and work.”
While the projects are in various stages of completion, most are expected to be completed by the end of 2013. Collectively, the projects represent a greater than $20 million investment, which is a part of the company’s planned capital expenditures for the year. In addition to hiring local contractors and labor to support construction, development, installation and maintenance for each project, Constellation will add 15-25 employees to accommodate the increased production and operations activities.