Steve Calderwood's - "From the Grapevine"
Sunday, October 25, 2009
This Constellation Has Some Bright Stars and Some Black Holes

By Steve Calderwood

Last week I took a cheap shot at Foster's Wine Group so I thought it only fair that we do a little star gazing into Constellation Brands (who?).

This is the world's largest wine company that nobody's ever heard of; in fact, it is the world's largest wine company, period, eclipsing even that other giant, E. & J. Gallo.

So who is this quiet giant? Where did it come from and where is it going? Well, this $3.7 billion (we won't mention that they sold $5 billion last year) behemoth started in much the same way as Gallo but on the other coast. In 1945, in Canandaiqua (my spell-check just puked), NY, Marvin Sands opened a little wine company.

Things didn't go too terribly well until 1954 when Marvin came up with a sickeningly sweet, 18-percent alcohol by volume, screw-cap wine that he decided to name after his baby son -- Richard's Wild Irish Rose (Richard is now the CEO of the company). This little favorite of the paper bag, cheap buzz crowd continued to be a major contributor to revenues until 1981, when the company decided to take a little risk.

That year they signed up as the sole U.S. importer/distributor of a cheap Mexican beer -- Corona. If you're like me and yell, "NFL (no expletive-deleted lime)!" at the bartender when you order a beer, these are the people whose name you should take in vain.

Needless to say, the purchase had a profitable impact on the company and it continued to grow, mostly by acquisition. In the last seven years it has purchased nine other wine companies, and we ain't talking little ones either. It spent $1.3 billion dollars for Robert Mondavi Corp. and another $1.3 billion in a hostile takeover of Canada's Vincor International.

Constellation's U.S. wine list is subdivided into four divisions -- North Lake Wines, Centerra Wine Company, Vintas and Icon Estates. Let's take a look at each of these.

North Lake Wines include Italian Swiss Colony (they're still around?), Cribari (makes Carlo Rossi taste good), Taylor New York, Smashed Grapes, Mouton Cadet, Kelly's Revenge (anything like Montezuma's?) and Le Domaine Champagne (still not French). If you haven't guessed yet, my advice is to stay away from this division.

The next is Centerra, focused on a slightly higher level. Its brands include Arbor Mist (waiter, there's fruit in my wine!), Wild Irish Rose (yep, they still make it), Cook's sparkling wine (at least they don't call it Champagne), Manischewitz, Alice White (Australia), Vendange, Covey Run, Woodbridge (by Mondavi), Talus and Mondavi Private Selection (not the good stuff).

Vintas is the next division and this group emphasizes Sonoma and Australia and it's actually good stuff. Its brands include Clos du Bois, Garry Farrell, Barossa Valley Estate, Banrock Station, Black Box (good juice in cardboard), Buena Vista, Hardy's, Nobilo and Rex Goliath.

Finally we come to the fine wine division, Icon Estates. This is the group where any of the high end brands wind up. They include Franciscan Oakville, Estancia, Mount Veeder Winery, Drylands (New Zealand), Simi, Ruffino (Italy), Kim Crawford (New Zealand), Tintara (Australia), Columbia Winery and Inniskillin (Canada).

So, that's Constellation Brands. A $4 billion company that started 60 years ago in a sauerkraut factory. What is the future for this takeover-happy wine machine? My guess is -- not much, thank you.

The reason I say this is that it appears Constellation has a bit of a hangover from ingesting a few too many companies (nine in seven years is a lot for anyone to absorb). Now they're warning shareholders that gross sales will be flat in 2009 (they dropped $1 billion from '07).

On to our upcoming wine events. The first is on Halloween Eve, Oct. 30. The American Red Cross is having a "Taste Something Red" event in Tavernier. It will be at the Taster's Grille & Market and features wines from Transylvania and nonalcoholic Bloody Marys. It's $20 per person and you can call 296-4033 for more info.

On Nov. 4, from 5:30 to 7:30 p.m., the Historic Cigar Alley is holding a fundraiser for the Gato Village Pocket Park behind the First State Bank on Simonton at Louisa streets. The cost is $10 and includes a wine tasting and a cigar. If you don't like cigars, just give it to me.

On Nov. 11, starting at 6:30 p.m., Azur is having a wine dinner on "the cutting edge of Spain." Six wines and six courses, all for $65. This one will sell out fast, so call 292-2987 to reserve seats.

On Nov. 13, from 5 to 7 p.m., Conch Republic Liquors is having a free tasting of Girard wines. I just tasted the line and they are delicious and very well priced. Lou will be running sale prices on the wines and Tasters Guild members get a special discount.

Then an event that is dear to my heart, to be held on Nov. 17 from 5 to 8 p.m. at the Grand Key Resort. It's the annual Sunrise Rotary "Wining for the Animals" wine tasting benefiting the SPCA. The cost is $20 and tickets can be purchased by calling Bill at 294-3297, Historic Cigar Alley at 294-2224, or at the door. It's for the abandoned or abused puppies and kitties and if you have any heart you'll be there.

Those interested in participating in this year's Key West Food & Wine Festival should contact Mark Certonio by Nov. 1. He can be reached at info#@keywestfoodandwinefestival.com or at 292-1622.

That's it for this week, so until next time -- wine a bit, you'll feel better.