RICHARD SANDS: “INFRASTRUCTURE WILL BE SIMPLIFIED TO BE FLATTER AND MORE FLEXIBLE.”

Stephen Millar, former CEO of Constellation Wines, announced his retirement today, propagating a $55 million (pretax) reorganization of the Company’s wine business. Stephen was credited for making Hardy the top wine company in Australia and helping Constellation become the wine giant it is today. However, Constellation is taking advantage of this transition time to grow even stronger as the world’s largest wine producer. Richard Sands say the company plans to “further refine our decentralized operating approach to enable our wine business leaders to be even more flexible and responsive.” Constellation reportedly plans to integrate certain wine production processes in U.S. wine companies and cut back on staff in the UK.


In regards to the company as a whole, Richard stated, “In fiscal year 2007 we expect net sales growth in the six to eight percent range, approximately double that of the industry, and we expect our margins to continue to grow.” Christine Farkas of Merrill Lynch believed the company’s outlook spells positive things for the wine industry’s future. “Constellation’s FY07 top line growth outlook of 6%-8% was robust and should alleviate fears of a wine price collapse on the back of increased grape/wine supplies out of California.”