## Constellation Spirits is the third largest U.S. spirits company by volume, with a 10 percent share of the market. 

Constellation Spirits’ leadership position, broad portfolio of popular priced brands and expanding breadth of premium niche spirits beverages have benefited from the overall growth in the spirits industry over the past six years. Several demographic trends have contributed favorably to spirits consumption, as have timely innovations throughout the industry and the renewed popularity of classic cocktails. 

## LEADING INDUSTRY POSITION 

Constellation Spirits is the third largest U.S. spirits company by volume, with a 10 percent share of the market. Because the industry is highly regionalized, with smaller producers holding strong niche positions, the importance of Constellation Spirits’ ranking as either number one or number two in Wisconsin, Kentucky, Nebraska, Iowa Montana, New York, Georgia, Florida, Colorado and Arizona is noteworthy. 

Constellation Spirits’ leading brand is Black Velvet Canadian Whisky. As an industry, all Canadian Whiskies grew only 0.3 percent last year. Sales growth for Black Velvet, however, was tenfold 

that of the entire category – up a full three percent. As the top growth performer in its category, Black Velvet gained critical market share in this important sector. Overall, Black Velvet is the 16th leading distilled spirit brand in the U.S., and the number one seller in three states. After a complete repackaging last year, Black Velvet Reserve, a premium 8-year-old Canadian Whisky, experienced a 29 percent case growth. This is another example of Constellation’s strategy of investing marketing funds behind higher-margin premium brands to maximize returns. 

## EXTENSIVE PORTFOLIO 

Constellation Spirits serves distributors and customers with a full portfolio of white, brown and specialty distilled spirits. Brown spirits include Scotch, American blends, Canadian Whisky and bourbon, while the white category covers gin, vodka, rum and tequila. Specialties include brandy, cordials and prepared cocktails. 

Because of the volume of Black Velvet and its other whisky brands, Constellation Spirits has a significantly higher 

proportion of its spirits business in the brown sector, than the industry at large. Further, brands such as Barton, Sköl and Fleischmann’s provide the company with a very strong represen- tation in the vodka category, the largest of all segments in the U.S. spirits industry. 

## SUCCESSFUL PRODUCT INNOVATION 

Constellation Spirits’ strategy is to maintain our strength where we have a major presence, and invest in higher- margin opportunities in underserved categories. Recent new product extensions and developments support this philosophy. 

Beachcomber flavored rums are a powerful addition to one of the fastest growing product groups in the spirits industry. Featuring four popular flavors: coconut, pineapple, spiced and apple, Beachcomber rums generated shipments of almost 25,000 cases in their first year. 

Chi-Chi’s added Mango Margarita to its line of pre-mixed cocktails last year, which helped boost brand sales over six percent. 

