Avenue Vine

WJ Deutsch & Sons, best known for Yellow Tail, which it markets in the U.S. (and co-owns, with Australia’s Casella Wines), where it’s by far the top-selling import, will serve as Ascentia’s exlusive sales and marketing agent. Ascentia’s lead investor is GESD Capital Partners, a San Francisco-based private equity firm.

As for Constellation, CEO Rob Sands said the sale will help the company reduce borrowings and eliminate brand duplication and excess production capacity (he cited Constellation’s extensive California portfolio and its presence in Washington with Hogue Cellars). Constellation Brands is now forecasting mid single-digit net sales growth for fiscal 2009 (ending next February 28), as it assimilates the remaining brands from the Beam acquisition, including 2-million-case premium Clos du Bois and high-end label Wild Horse. (1)

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GOING DEEPER:

Geyser Peak Winery

Atlas Peak

Buena Vista Carneros

Gary Farrell Winery

XYZin

Columbia Winery

Covey Run

Ste. Chapelle

Newly-formed Ascentia Wine Estates Debuts with Acquisition of Million-Case Portfolio of Top Wines from California and Pacific Northwest

Jim DeBonis, former COO of Beam Wine Estates, is pleased to announce the formation of Ascentia Wine Estates. The newly-formed company comprises a group of investors that includes William and Peter Deutsch, proprietors of leading wine importer W.J. Deutsch & Sons, Ltd., and GESD Capital Partners, a San Francisco-based private equity food and beverage investor.

Ascentia Wine Estates' first major acquisition is a portfolio of wineries representing a million-case annual production of highly rated wines from California and the Pacific Northwest: Geyser Peak Winery, Atlas Peak, Buena Vista Carneros, Gary Farrell Winery, XYZin, Columbia Winery, Covey Run and Ste. Chapelle. As part of the transaction the company also acquired 646 acres of prime vineyard land. Ascentia Wine Estates, based in Healdsburg, California, acquired the portfolio of labels from Constellation Brands (NYSE: STZ, ASX: CBR).

"We are thrilled with this acquisition," said Ascentia Chief Executive Officer DeBonis. "These wines are consistently highly-rated and we are confident the brands will flourish in our highly focused portfolio. The size of the Ascentia portfolio, the superior quality of the wines, and our partnership with W.J. Deutsch & Sons, Ltd., who will serve as our exclusive sales and marketing agent, allows for immediate strength in the marketplace. We also believe this provides an excellent platform from which Ascentia Wine Estates can launch future acquisitions."

Peter Ekman, former CEO of Wine.com and now Ascentia Wine Estates' chief marketing and sales officer, in conjunction with W.J. Deutsch, will create a campaign that will allow Ascentia's new wines to "step into the limelight," according to DeBonis.

"These brands fit together exceptionally well to create a strong presence in the ultra-premium and luxury market segments," commented Bill and Peter Deutsch of W.J. Deutsch & Sons, Ltd., one of the country's foremost wine import and marketing companies. "As a marketing-led company, we pride ourselves on identifying and capitalizing on consumer-driven niches. Ascentia Wine Estates offers ideal product solutions for a number of strong growth opportunities that we have identified in the wine market."

The wines that comprise Ascentia Wine Estate's acquisition include:

Geyser Peak(R) Winery -- Founded in 1880, Geyser Peak winery consistently garners some of the most prestigious awards in winemaking, including numerous Winery of the Year and Winemaker of the Year honors. Winemaker Mick Schroeter is noted for fruit-forward, food-friendly wines from Geyser Peak's 100 acres of estate vineyards in the Alexander Valley as well as from additional prime vineyard sources.

Atlas Peak(R) -- Winemaker Darren Procsal's Mountain Cabernet crafts four distinct wines sourced from the most renowned mountain appellations in the Napa Valley: Atlas Peak, Mount Veeder, Spring Mountain and Howell Mountain. Atlas Peak Napa Cabernet also offers a blend of these mountain wines. Atlas Peak's most valuable resource is the elevation of its vineyards, located between 1,400 and 1,800 feet above the Napa Valley floor, an advantageous growing milieu for many varietals, but none more so than Cabernet Sauvignon.

Buena Vista(R) Carneros -- Founded in 1857 as California's first premium winery, Buena Vista, under the direction of winemaker Jeff Stewart, focuses on cool-climate Pinot Noir, Chardonnay, Merlot and Syrah. Highly rated, these wines expertly capture the winery's unique, multifaceted 500-acre estate vineyard in Carneros.

Gary Farrell(R) Winery -- Located in the heart of the Russian River Valley, Gary Farrell Winery is a boutique winery known for producing extremely sought after Pinot Noir and Chardonnay. Founding winemaker Gary Farrell was instrumental in elevating Russian River Valley Pinot Noir to its current vaunted status. For the past several years winemaker Susan Reed has masterfully carried on the high standards of artisan winemaking that has established Gary Farrell wines' fame.

XYZin -- By creating a portfolio of Zinfandels from vines that span more than 100 years of California history, Ondine Chattan invites consumers to experience the thrilling range of this varietal with three exciting new Zinfandels: XYZin 10, XYZin 50, and, XYZin 100, each representing the minimum age of vines at time of harvest.

Columbia Winery -- Pioneering Washington winemaking since 1962, Columbia Winery was the first to produce several varietals in the state, including Syrah, Cabernet Franc and Pinot Gris. Columbia Winery winemaker Kerry Norton continues to experiment with new varietals and take the winery in exciting new directions.

Covey Run -- Covey Run celebrated its 25th anniversary in 2007. Since the release of its 1982 vintage, Covey Run has crafted wines from Washington's Columbia River Valley that have been embraced by consumers and wine writers, earning 20 Wine Spectator Best Values awards. Winemaker Kate Michaud's offerings include delicious wines for every occasion, from stylish entertaining to casual gatherings and picnics with family and friends.

Ste. Chapelle -- From atop the aptly named Winery Hill, Ste. Chapelle overlooks the fertile orchards and farmlands of the famed Snake River Valley in the region of Southwestern Idaho known as Sunny Slope. The valley's high altitude vineyards, which enjoy long daylight hours, supply Ste. Chapelle winemaker Chuck Devlin with the superior grapes for his award-winning creations.

About GESD:
GESD Capital Partners, LLC is a San Francisco-based private equity firm focused on consumer products companies, particularly in the food and beverage sectors. GESD's other portfolio companies include Andre Boudin Bakeries, Go Roma Italian Kitchens and Milton's Fine Foods, LLC.

GESD is led by Lou Giraudo, Sharon Duvall, Mark Briggs and Dan Stromberg. The principals have had direct management responsibilities as successful entrepreneurs, executives, principal investors, and advisors in companies and industries with sales ranging from $5 million to over $500 million. In addition to his duties at GESD, Lou Giraudo is also the chairman of Pabst Brewing Company. Dan Stromberg led GESD's investment activities in the acquisition and will continue to lead GESD efforts in connection with Ascentia. Please visit www.gesd.com for more information.

About W.J. Deutsch & Sons, Ltd.:
W.J. Deutsch & Sons was founded in 1981 by Chairman Bill Deutsch to market quality wines produced by prestigious families from major wine regions of the world. Deutsch's wines are sold to the trade with well-planned marketing support and offered to U.S. consumers at fair market prices. Today the company is renowned for its brand building prowess and ability to identify and fill consumer niches within the wine category. They have built numerous category leaders, including the #1 selling brand in the U.S., the #1 imported brand in the U.S., the #1 Australian brand in the U.S., and the #1 French brand in the U.S. Bill's son Peter Deutsch is CEO; thus two generations of the Deutsch family work side by side in a continuous quest to build strong brands and relationships throughout the wine industry.

The W. J. Deutsch & Sons portfolio of award-winning wines now includes: [yellow tail], [yellow tail] The Reserve, and [yellow tail] Sparkling, Kunde Estate, Geyser Peak, Buena Vista, Gary Farrell, Atlas Peak, Esser Vineyards, Covey Run, Columbia Winery, Ste. Chapelle, Andre Lurton, Georges Duboeuf, HobNob Vineyards, J. Vidal Fleury, Pierre Sparr, Sauvion et Fils, Barone Fini, Castello di Monastero, Coldisole, Poggio alle Sughere, Villa Pozzi, The Crossings, and Quinta Do Vale Meao. For additional information about W.J. Deutsch & Sons please visit the company's Web site at wjdeutsch.com. (2)

HEALDSBURG, Calif., June 16, 2008

Source: (1)“Upstart Ascentia Buys Eight Constellation Wines,” Dan Marsteller, Wine Spectator ; (2) Press Release, June 16, 2008

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