Leading wine and spirits distributor, Constellation Brands Inc. (STZ), has entered into a pact with a popular franchise in the National Football League, Buffalo Bills, to provide a wide range of wines and spirits to football fans in the executive suites and premium club area at Ralph Wilson Stadium in Orchard Park, New York.
Under the deal, Constellation will offer more than 15 wine and spirits varieties to fans from its product assortments for a period of three years. Renowned wine varieties chosen to be offered comprise Woodbridge by Robert Mondavi, Franciscan Estate, Ruffino, along with new brands including Primal Roots and Simply Naked. The fans will also have access to spirits including Svedka vodka and Black Velvet Canadian whisky.
With this contract, the company looks to boost the popularity of its wine and spirits brands among football fans. Additionally, the contract should help pull up the company’s top line. For Buffalo Bills, this deal happens to be an effort to gratify its fans by making available high quality wines.
Constellation Brands is the largest wine company in the world with a strong portfolio of premium wine brands complemented by spirits, imported beer and other select beverage alcohol products. The company is also a leading producer of wines in Canada and New Zealand. This provides a competitive edge to the company and bolsters its well-established position in the market.
Constellation Brands competes with Beam Inc. (BEAM) and privately held E. & J. Gallo Winery and Jackson Family Wines. Constellation Brands also encounters competition from local and regional players in the respective countries.
We currently have a Zacks #2 Rank implying a short-term Buy rating. However, our long-term recommendation on the stock remains ‘Neutral’.
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