Sightlines — Constellation Brands Plans 450,000 Square Foot Distribution Space

Austin Ray

THE GIST
Constellation Brands has announced construction of a 450,000 square foot warehouse in the I-45 corridor near Dallas, Texas. The New York-based company handles several premium wine and spirits brands as well as the Corona, Modelo, Pacifico, and Ballast Point—the latter of which they purchased for $1 billion in 2015.

WHY IT MATTERS
This is a key move for Constellation, which bills itself as the third largest beer brand in the U.S. The company plans to break ground on the new facility one week from today, Sept. 8th. California-based logistics company Biagi Bros, who handles shipping for Constellation, will share the facility. 

Previously, we’ve seen businesses such as AB InBev acquire key distribution points through the purchase of existing distributors and breweries. This sizable investment from Constellation is a departure from that tactic. The growing Modelo and Corona brands have pushed Constellation's market share in the Lone Star state to 8%. Once completed, this distribution center will give the company the opportunity to boost this growth in what is a very healthy beer market. And thanks to its partnership with Biagi Bros, this new facility won’t just help Constellation expand in the bourgeoning Texas market—it'll propel them throughout the rest of the U.S., too. 

READ MORE
Major beer, wine firm adds southern Dallas distribution center in I-45 corridor [The Dallas Morning News]

—Matthew Curtis