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| File:Constellation Brands Logo.svg | |
| Company type | Public |
|---|---|
| Traded as | NYSE: STZ S&P 500 Component |
| Industry | Beverages |
| Predecessor | Canandaigua Wine Company |
| Founded | 1945 (1945) |
| Founder | Marvin L. Sands |
| Headquarters | Victor, New York |
| Area served | North America, Europe, Australia, New Zealand |
| Key people | Robert Sands, President & CEO Richard Sands, Chairman of the Board |
| Products | Wine, beer, and spirits |
| Revenue |  US$4.87 billion (2013) |
| Operating income | US$2.44 billion (2013) |
| Net income | US$1.94 billion (2013) |
| Total assets | US$14.30 billion (2013) |
| Total equity | US$4.98 billion (2013) |
| Number of employees | 4,300 (2011) |
| Divisions | Constellation Wines North America, Constellation Wines Australia and Europe, Constellation Wines New Zealand, Crown Imports |
| Website | www |
Constellation Brands, Inc., of Victor, New York, is a publicly traded drinks company with brands in wine, beer and spirits.
History and description
The company was established in 1945 by Marvin Sands in the Finger Lakes region of New York as Canandaigua Industries Company. Since that time, the company has grown through internal expansion and by acquisitions across all segments of the beverage alcohol industry.
Constellation Brands is the largest wine producer in the world. It had sales of over $3.77 billion in fiscal year 2008. It operates about 40 production facilities, employs some 4,300, and markets its products worldwide.
The company owns more than 100 brands in wine, beer and spirits. Wine brands include Robert Mondavi, Clos du Bois, Franciscan Estates, Ravenswood, Blackstone, Nobilo, Kim Crawford, Inniskillin, Jackson-Triggs and Arbor Mist. Beer brands include Corona, Modelo Especial and Negra Modelo, Pacífico, and Tsingtao. Spirits brands include Black Velvet Canadian Whisky, Svedka Vodka and Paul Masson Grande Amber Brandy.
Wine fraud
In 2010, a French court in Carcassonne, France, convicted 12 wine traders and producers for selling fake Pinot noir wine to Constellation in a scheme that lasted from January 2006 to March 2008. Constellation later faced a class action lawsuit because it "should have known" that the wine was fake.
Six Degree of Separation : CEDC STZ securities fraud
- 1. G W Bush President Chief Dept of Labor/ Sarbanes Oxley Act/ Judge Oliver Wagner - retired- Bush appointment/Appointment of Helen Clark to UNDP/ Condolezzeea Rice- Board of DropBox (your data is secure)
- 2. Robert Koch - Bush,
CEO Wine Institute,
Director/owner CEDC - Central Europe Distribution Co - in bankruptcy since 2012-13, restatements of earnings, - sold to a Russian Group
Chief Lobby group for Constellation Brands
CEO WWTG - World Wine Trading Group - an informal group including private and government officials from New Zealand, Australia, US, others ....
Central European Distribution Corporation CEDC - Securities Class Action Lawsuit 2012 NY - fraud
- 3. Sands - CEO/COO/ Owner/s for Constellation Brands
- 4. Ron Fondiller - Corporate Lawyer , Secretary, Paul Zieff ESQ, Jacob Weisberg ESQ
- 5. Jon Moramarco (former Ceo Canandaigua Wine Co Inc CWCI, Brent Hanston Accounting Director CWCI , Mike Williamson Finance Director CWCI, Kathy Bello HR Director CWCI, Darlene Penn/Borelli, HR CWCI
Accounting Irregularities - Australia 2006-2009
(CEO Jon Moramarco is dismissed following revelation of financial irregularities Australia -2008) (refer : Ronald Fondiller, Kathy Bello, Brent Hansston, Darlene Penn/Borelli et Canandaigua Wine Co Inc.)
Tax and STZ Stock Fraud since 2000
- inter company accounts, concentrate business, wine business Mission Bell California
"Sands artificially inflated the basis in Constellation stock by approximately 900 percent and sold it"
Law360, New York (December 10, 2013, 8:49 PM ET)
(December 10, 2013) The U.S. Supreme Court on Monday passed on an appeal brought by heirs of Constellation Brand Inc. founder Marvin Sands who sought to nix hefty penalties tied to their participation in a series of transactions the government claims were designed to avoid paying taxes on over $125 million in capital gains income...............
Both Rob Sands, Constellation Brands' Chairman and CEO, and Richard Sands, chairman of the company's board of directors, are accused of participating in now infamous Son of BOSS tax shelters ...........................
The latest decision is tied to seven consolidated tax cases stemming from the sale of stock in Constellation Brands and other companies in the early 2000s. The government claims the Sands' participated in a series of dubious transactions in a bid to shield income generated from these transactions from substantial tax liability ...........................
According to the government, the Sands artificially inflated the basis in Constellation stock by approximately 900 percent and sold it through R R M & C Group LP for $74.8 million in 2001. But rather than recognizing a gain of approximately $65 million on the sale, Group LP reported a $19.8 million loss on the transaction, authorities claim. ....................................
“It is plain that any reasonable person, not to mention ones as highly sophisticated as Robert and Richard Sands, would have known that an attempt to manufacture and claim a loss nearly 200 times greater that one’s actual loss in a transaction was too good to be true,” the government said in a filing with the district court.
Lawsuits/Fraud claim since 2002
Australia
- Moldauer v Constellation Brands - High Court of Australia 2013
- Moldauer v Constellation Brands - Supreme Court of South Australia - Appeal - Chief Justice(2013) (Noted: Police brutality prior to court hearing) - claimed Constellation Brands does no business in Australia
- Moldauer v Constellation Brands - Supreme Court of South Australia - Master Judge (2012) （Forum Non Conveniens）
(BRL Hardy bought for 1.1B (2003) sold for 290M (2009) Champs Equity 80%)- Red flag
US
- CANANDAIGUA WINE CO v. MOLDAUER ( Dec 2002 - withdrawn in 2009)
- Sarbanes Oxley Claim AJL - ADMINISTRATIVE LAW JUDGE - DEPT OF LABOR - Moldauer v. Canandaigua Wine AJL 2003-SOX- 00026 (Nov 2003)
- Arbitration - AAA - American Arbitration Association
- CONSTELLATION BRANDS, INC. ET AL v. MOLDAUER (Jan 2005)Western District Court of New York - Rochester - 05-CV-6010T
- CONSTELLATION BRANDS, INC. v. MOLDAUER (Feb 2005) State Supreme Court, Rochester New York 04-34393 Second Circuit 05-0726-cv (April 2005) - stay of Arbitration ( by a state judge in a federal matter)
- MOLDAUER v CONSTELLATION BRANDS INC + OTHER (Oct 2005) (10 August 2007)
- Sarbanes Oxley Claim ARB - ADMINISTRATIVE REVIEW BOARD - DEPT OF LABOR - Moldauer v Canandaigua Wine ARB 04-022 (Dec 2005)
- SARBANES - OXLEY - CLAIM - 2002/ - ; SOX 2008 -0073 REFERS: 836 Million accounting error traced back to 2002
AJL /DOL second response, Conclusion (29 Dec 2008)*ARB APPEAL (2009)
- Moldauer v Weisberg - California USA, 2010
New Zealand
- Moldauer v. Constellation Brands Inc + " Other ?" (NYSE:STZ ASX:CBR)- (lack of Jurisdiction - clerical error)
- 1. Appeal - High Court of New Zealand -- CIV : 2007- 404-5589
- 2. Appeal in High Court
- 3. Court of Appeals in New Zealand - Wellington July 2009
- CIV-2005 – 004 – 001686 Auckland District Court, New Zealand (2005)
（Statement of claims (breach of contract, breach of code, deceit, fraud) (2005): - claimed Constellation Brands has no business in New Zealand
Valuations
- CAP 1B(2002) 3B(2008) 16B(2014)
Acquisitions
Constellation Brands has expanded by acquiring other drinks companies.
In 1998 it acquired Matthew Clark plc in the United Kingdom, and after selling off its cider business, the Gaymer Cider Company, sold half of the business to Punch Taverns. Recent acquisitions include BRL Hardy (Australia) and Nobilo (New Zealand) in 2003; Robert Mondavi Corp. for $1 billion in 2004; Vincor International, Canada's largest wine company, for $1.44 billion in 2006; Spirits Marque One (owner of Svedka Vodka) in 2007; and Beam Wines Estates, the wine operations of Fortune Brands (which included several major brands such as Clos du Bois) for $885 million in 2008. The company later moved to a more premium wine portfolio, divesting Almaden Vineyards, Inglenook Winery, and the Paul Masson winery in Madera, California, in 2008, and its value spirits portfolio in 2009.
In June 2013 the company, which formerly imported Corona and other Modelo brands to the United States, acquired the US rights to those brands as a part of an anti-trust settlement permitting Modelo's acquisition by Anheuser-Busch InBev, along with a brewery in Mexico. It now produces its own versions of those products for the US, with Modelo serving all other countries.
See also
References
- ^ Constellation Brands, Incorporated (April 29, 2011), FORM 10-K for the Fiscal Year Ended February 28, 2011, Washington, D.C.: U.S. Securities and Exchange Commission, File 001-08495, film 11793905, retrieved June 30, 2011
- David Kesmodel (February 25, 2010). "Liquor Discounts Become Bad Habit for Spirits Makers". Wall Street Journal. New York.
- Jon Bonné (February 19, 2010). "Pointing Fingers in Pinotgate". San Francisco Chronicle.
- "Plot Thickens in 'Pinot Gate' Scandal". Food Service World. March 1, 2010.
- KPMG - Sydney Morning Herald
- http://www.law360.com/articles/494224/high-court-passes-on-sands-heirs-tax-penalty-appeal
- case: Alpha I LP et al vs US 12-550 US Supreme Court
- SOX 2008 - 0073
- Shaw, John (January 18, 2003). "Constellation Brands Agrees to Buy Australian Winery". The New York Times. Retrieved April 24, 2009.
- "Mondavi to Join Constellation in $1 Billion Deal". Wine Spectator. Retrieved May 15, 2009.
- "Constellation To Buy Vincor for $1.09 Billion". USA Today. April 3, 2006. Retrieved May 15, 2009.
- "Constellation Brands to buy Svedka vodka". Reuters. February 6, 2007. Retrieved May 15, 2009.
- Sam Zuckerman (November 13, 2007). "Constellation Brands buys several California premium wine labels". San Francisco Chronicle. Retrieved November 13, 2007.
- Styles, Oliver (January 23, 2008). "Constellation sells Inglenook, Almaden and Paul Masson winery, reports 832 million dollar loss". Decanter.com.
- Gershberg, Michele (January 12, 2009). "Constellation Sells Value Spirits for $334 Mln". Reuters UK. Retrieved May 15, 2009.