USA: Constellation Brands introducing Bloody Mary-style beer

Constellation Brands says it is introducing a Bloody Mary-style beer in the US as it seeks to exploit a “pretty large category” currently dominated by one player, BeverageDaily.com reported on July, 3.

During an investor call to discuss the company’s results (announced earlier this week), Lauren Torres from HSBC asked CEO Robert Sands what could be “done differently in beer” now it had full ownership of Grupo Modelo’s US beer business.

Constellation completed its acquisition of Grupo Modelo’s US beer business from AB InBev on June, 7 for $4.75 bln.

The deal includes a large-scale brewery in Piedras Negras, full ownership (the other 50%) of the import business for brands including Corona, Crown Holdings, and a permanent license to sell these brands in the US.

Sands said the acquisition had added “an entirely new dimension to our company”, and told analysts that Constellation was most excited about opportunities for innovation and NPD in beer.

The company had already introduced and was test marketing Modelo Especial Lite in the US, he said, adding that it plans to introduce Modelo Especial Chelado, a Bloody Mary-style beer, in the US.

This is a tomato, salt and lime-flavoured 3.5% brew, he said. “The pretty large category” of such beers, he added, is currently dominated by one other supplier “so we see a lot of opportunity there.”

“With the ownership of our own production, we can produce new packages and new types that previously we wer entirely reliant upon the consent of Modelo to produce,” Sands said.

“And generally, they didn’t really want to do much in the way of innovation, new products, new packages, new types. No less, new brands,” he said.

04 July, 2013