Constellation To Close RH Phillips Winery, Move Brands To Woodbridge

The following letter, was sent Monday:

May 18, 2009

Dear Colleagues:

As Constellation has grown, our footprint has changed, resulting in excess capacity at some of our facilities.  As part of this footprint review and a strategic initiative to improve operational efficiency, it was determined that we can replicate the capacity at RH Phillips in Esparto, California at our Woodbridge facility in Lodi.  As a result, we have decided to close the RH Phillips winery on September 1, 2009, and transfer the production of the Toasted Head and RH Phillips brands to the Woodbridge Winery.

As we make this transition, we recognize the importance of maintaining the quality and integrity of these wines.  To that end, we will retain the Dunnigan Hill vineyards and Rod Scheaffer will remain in his role as vineyard director.  In addition, the winemaking equipment will be relocated to the Woodbridge winery to ensure that the wines are made with the same techniques that give them their unique styles.

Also, I am pleased to announce that Blake Kuhn and Owen Smith will both relocate to the Woodbridge winery as winemakers for Toasted Head and RH Phillips, further ensuring the continuity of the winemaking style of these brands.

We are saddened to announce the departure of RH Phillips’ winemaker and general manager Barry Bergman, as he has accepted another position within the wine industry. We are grateful for his contributions and wish him well in his new endeavors.

The team at RH Phillips was notified of the closure last week.  Unfortunately, there will be some employees impacted by this decision.  We will explore other opportunities for them within the organization wherever possible.  As always, severance packages will be provided to impacted employees.

I would like to extend my gratitude to the RH Phillips team for their dedication, quality winemaking, and professionalism over the years.

Sincerely,

Greg Fowler
SVP Operations