Strategy of Constellation Brands Literature review

Strategy of Constellation Brands - Literature review Example There is little question that Constellation is truly a diverse global company. According to the company website, the corporate structure of the company is broken into three divisions which are Constellation Wines North America (Which also controls Vincor Canada), Constellation services which is a joint venture with the Gruppo Modello of Mexico under the name of Crown Imports LLC. Lastly, there is Constellation International which controls Constellation Europe, New Zealand and Australia respectively. With Respect to branding within the firm, in terms of the spirits, product offering is varied across product lines but the common trait is that all the spirits on offer are premium and mid-premium brands. (Vedka Vodka, Black Velvet Rye, and Paul Masson Grand Amber Brandy). According to Gershberg & Geller (2009), Constellation had recently sold off its value spirits brand ‘Sazerac Co’ which had accounted for approximately two-thirds of the company’s 2008 spirits sales i n terms of volume however it is the case that this division is estimated only at accounting for 30% of the profit. As was stated on the company website it is the case that the focus remains on well-known brands which in turn provides name recognition to customers. According to the company website (2009), the popular Mexican brands controlled by Constellation through its joint venture are Corona Extra, Corona Light, Modelo Especial, Pacifico and Negra Modelo. Other major international brands controlled by the company are St. Pauli Girl from Germany and Tsingtao from China. All of which are considered premium and semi-premium brands. The company also has a number of what it dubs ‘other’ beverages which are malt liquors, ciders, and fortified wine.