Mexico & United States: Grupo Modelo, Constellation Brands reach agreement on promotional and marketing expenditures for their beer import JV

Constellation Brands, Inc. and GModelo Corporation, a subsidiary of Grupo Modelo, S.A.B. de C.V., Mexico's leading brewer, announced on October, 29 the settlement of legal action brought by GModelo against Constellation and certain of its affiliates in New York Supreme Court.

At issue was the marketing and promotional budget for the two companies' joint venture, Crown Imports LLC, for calendar year 2010. The joint venture partners reached agreement on promotional and marketing expenditures for 2010 and through the remainder of the term of the joint venture agreement for the benefit of the business of Crown.

Rob Sands, president and CEO of Constellation Brands and Carlos Fernandez, chairman and CEO of Grupo Modelo said in a joint statement, "We are pleased to have reached an agreement that is favorable to both joint venture members and Crown's business. Crown will continue to have the world class marketing and promotional programs that have made it the unrivalled leader in the U.S. imported beer category."

29 October, 2010