MORE NEWS ON THE VINCOR INTEGRATION PROCESS
After announcing last month that Constellation will release 230 Vincor employees, further details surfaced today when the company revealed its plan to streamline its wine operations in Australia and restructure businesses in the UK.
The company plans to buy out grape and processing contracts and offload “certain non-strategic assets” in Australia to help save face in an “intensely competitive” market brought on by the grape glut and intense pricing pressure orchestrated by big box retailers. Constellation will also restructure its bottling and distribution operations in the UK to help increase capacity and efficiency, along with consolidating its supply chain.
Constellation said it expects the projects to cut net operating costs by $5 million in fiscal 2008, and over $15 million from fiscal 2009 onwards.
The company plans to buy out grape and processing contracts and offload “certain non-strategic assets” in Australia to help save face in an “intensely competitive” market brought on by the grape glut and intense pricing pressure orchestrated by big box retailers. Constellation will also restructure its bottling and distribution operations in the UK to help increase capacity and efficiency, along with consolidating its supply chain.
Constellation said it expects the projects to cut net operating costs by $5 million in fiscal 2008, and over $15 million from fiscal 2009 onwards.
posted at 12:31 PM
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