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Constellation Brands Looking to Buy Chateau Ste. Michelle?
May 17, 2017
(WineMag) - Slipped into Tuesday’s Wells Fargo research report on Constellation Brands’ (ticker STZ) dominance of the beer industry—its Corona, Modelo and Pacifico brands show no signs of slowing sales—are arguments why one of the largest publicly traded wine companies should consider buying more wine.
Wells Fargo Managing Director Bonnie Herzog, head of the investment bank’s tobacco and beverage coverage, argues that beginning in Constellation Brands’ Fiscal Year 19 (next year), the maker of Robert Mondavi, Clos du Bois, Franciscan Estates, Ravenswood and Manischewitz among others, will begin to have funds for an acquisition. By FY21, she estimates it will have $8 billion to $10 billion in buying power.
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