Canandaigua Wine Producing Bags For Almaden Bag-In-The-Box

Canandaigua Wine, a division of Constellation Brands, Inc. (STZ and STZ.B), announces that it is now producing, in-house, the bags used for its popular Almaden Bag-in-the-Box brand. The company, which has invested in two automated bag-making lines at Paul Masson Cellars and Vineyards, will produce 100 percent of the bags needed for the brand. The company has relied on external suppliers for the bags until now. By bringing the bag-making technology in-house, Canandaigua Wine will enhance and control bag quality. "Most wine companies would never dream of making their own packaging components, but we can enhance the bag quality and streamline costs by producing the bags in-house," said Michael Othites, Vice President of California Operations.

"Our mission is to make a consistent supply of higher quality bags at the lowest cost. We are always looking for ways to deliver a higher quality product to our customers." With more than 12 million 5-liter boxes sold annually, Almaden Bag-in-the-Box is the '2 brand in the value box wine segment. The Almaden Bag-in-the-Box packaging includes three components: the wine, the bag with spout/tap and the box. When the now famous Conro "Twist N Serve" spout was introduced several years ago, the easy-opening and dripless closing spout was a hit with consumers. At the same time, Canandaigua Wine began to reexamine its bagging operation and consulted with Derek Fay, a South African engineer, on the feasibility of manufacturing bags in-house for the popular Almaden Bag-in-the-Box brand. In designing the automated line, Fay used proven bag-making techniques and then incorporated innovative design features to make the line function better and faster than any other in the world. The first line was built and tested in South Africa before equipment was shipped last year to Paul Masson Cellars and Vineyards.

From a production standpoint, the bags are being produced in-house with an emphasis on quality. Employees on the bag-making lines regularly check the bags to ensure that they are meeting the company's high standards for bag quality. After completing a one-year pilot phase involving equipment testing and employee training, Canandaigua Wine recently invested in a second automated bag-making line. Together, these lines will provide 100 percent of the bags needed for the brand. "This new automated bag-making line allows us to produce, in-house, a high volume of bags, week after week," said Wayne Childress, general manager of Paul Masson Cellars and Vineyards. "It adds a new dimension to our production environment and packaging capabilities, and helps us maintain more control over the quality of our bags. We can also run the bag-making operation with lower overhead than most bag suppliers, which saves on cost." Paul Masson Cellars and Vineyards is owned and operated by Canandaigua Wine, a division of Constellation Brands, Inc. (NYSE: STZ, STZ.B). Canandaigua Wine, the second largest wine company in the world, satisfies millions of consumers nationwide by providing quality wines for the enjoyment of everyday life. Canandaigua Wine produces, markets and sells more than 40 well known brands, including Alice White, Almaden Bag-in-the-Box, Arbor Mist, Columbia, Cook’s, Covey Run, Dunnewood, Inglenook, K Cider, Paul Masson Grande Amber Brandy, Talus, and Vendange. Constellation Brands, Inc. is a leading producer and marketer of beverage alcohol brands, with a broad portfolio of wines, spirits and imported beers. The Company is the largest single-source supplier of these products in the United States, and both a major producer and independent drinks wholesaler in the United Kingdom.