Wine Industry Report

A recent document filed with the US Securities and Exchange Commission gave recent share option grants and the annuities payable to Mr Stephen Millar on his retirement as CEO.

To see this document click HERE. In particular, on February 16, 2006, the Board of Directors of Constellation Brands, Inc. approved the acceleration of the vesting of certain unvested options to purchase shares of the Company’s $.01 par value Class A Common Stock.

Mr. Millar is retiring as Chief Executive Officer, Constellation Wines in connection with the restructuring of the Company’s global wine business. On February 16, 2006, the Company and Mr. Millar entered into an agreement whereby, effective February 28, 2006, Mr. Millar’s current position with the Company will end. Pursuant to the Agreement, Mr. Millar will continue an employment relationship with the Company until February 9, 2007, consistent with the terms and conditions of his service agreement dated June 11, 1996, as amended, holding the title Non-Executive Chairman, Constellation Wines. During this period he will have no specific duties but be available at the Company’s request to provide counsel and guidance in various wine-related projects. On February 9, 2007, the Service Agreement will terminate and he will be paid in accordance with its terms, including a termination payment in the aggregate amount of A$3,681,984 (equal to US$2,724,668 based on a conversion rate of A$1.00 to US$0.74), together with an additional bonus in the amount of US$100,000 in recognition of his contributions to the Company. The Agreement provides that he will not be entitled to receive future awards under the Company’s Long-Term Stock Incentive Plan or Incentive Stock Option Plan. Following Mr. Millar’s retirement from the Company on February 9, 2007, he will have twelve months to exercise any remaining stock options. On February 9, 2007, he will also be entitled to retirement benefits under the Hardy Wine Company Superannuation Plan in accordance with the terms of that plan. Mr. Millar will remain subject to his obligations of non-competition and confidentiality to the Company and its subsidiary Hardy Wine Company through February 9, 2008.