Thursday, April 13, 2006

WHAT IS TO COME OF VINCOR?

There has been speculation in the industry over what is to come of Vincor once Constellation fully takes over, some believing Vincor will remain a separate entity while others disagree. While Constellation has had a long history of allowing subsidiaries to run on their own - Hardy Wines in Australia for example - some acquisitions have not faired the same, like the recent Mondavi acquisition. While Vincor has strong brands and a popular presence in Canada that will benefit Constellation, they do not necessarily need Vincor’s management team to function, according to some sources. However, both companies have insisted that the “financially sound” Vincor will remain a separate entity, maintaining the merger is a “good fit” for both.