VATS Liquor and Constellation Brands Collaborate on Mondavi Brand in China

27 Mar 2014 --- VATS Liquor and Constellation Brands, Inc., have announced a long term strategic agreement to jointly develop the iconic Robert Mondavi brand, the world's number one selling table wine, in China. VATS Liquor, a strong and trusted brand building and distribution business for authentic brands in China, and Constellation, the world's largest premium wine company, will work together to exclusively market and promote the brand.

The format and the scale of this agreement is unique in the global wine industry. It also begins a new chapter of commercial cooperation between the U.S. and China for the wine industry.

Mr. Wu Xiangdong, chairman of VATS Group and VATS Liquor; Mr. Zhu He, managing director of VATS Liquor; Mr. Jay Wright, president of Constellation Wine and Spirits Division and hundreds of distinguished guests attended a press conference today at the Chengdu Minyoun Royal Hotel. The strategic agreement between VATS Liquor and Constellation is anticipated to last for a few decades. Both companies will work to grow the marketplace share of the Robert Mondavi brand through Constellation's brand management expertise and VATS' vast distribution network and knowledge of the Chinese consumer.

"The mission of VATS Liquor is to offer reliable channels for consumers to buy authentic fine wine and spirits. Constellation is the world's largest premium wine company, and it has more than one hundred brands of wines, spirits, and beer. I cordially welcome Robert Mondavi wines, the crown jewel of Constellation's wine portfolio, to join the VATS's portfolio. It will satisfy the growing wine consumption of the middle class, and escalate the wine business development of VATS Liquor," said Wu Xiangdong, chairman, VATS Group and VATS Liquor. "China is the fifth largest wine consumption market globally and is projected to be a key driver of total global wine growth during the next five years. The vision of both VATS Liquor and Constellation is to build Robert Mondavi to the number one imported premium wine brand in China.

The deep understanding of Chinese consumer insights and the professional brand building capabilities of VATS Liquor is the key reason for this agreement.

 "This strategic alignment with VATS Liquor is an exciting step forward in the execution of our international strategy, which is focused on establishing strong distribution of our powerful global wine and spirits brands in core markets around the world," said Rob Sands, president and chief executive officer, Constellation Brands.  "VATS Liquor, a proven and successful brand builder in the alcohol beverage industry, is the right strategic partner for us to work with to build our Robert Mondavi brand portfolio in China due to its vast industry experience, established market relationships and deep knowledge of the Chinese consumer. This long-term agreement with VATS Liquor demonstrates our commitment to this region and to investing in our brands."

Considered by many to be the "father of American wines", Robert Mondavi was a pioneer of the modern California wine industry and is recognized for putting California wines in the company of the great wines of the world. For more than 40 years, Robert Mondavi Winery has produced superior wines from exceptional vineyards in the Napa Valley. Mr. Mondavi also created Woodbridge by Robert Mondavi for everyday enjoyment and Robert Mondavi Private Selection to celebrate the diversity of California's winegrowing regions.

"Most American wines have very little brand recognition in China, however the Robert Mondavi name is recognized as a synonym for quality, craftsmanship and taste," said Jay Wright, president, Wine and Spirits Division, Constellation Brands. "Through VATS Liquor's distribution network, Constellation will leverage that recognition and capitalize on this unique opportunity to increase exports of California wine and build brands through the Robert Mondavi name. With the deep roots we are cultivating, we intend to shape this important market and make these wines available to more Chinese consumers."