A beverage giant born in World War II’s wake

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Establishing a brand that people would recognize was a key goal for Marvin Sands. It is certainly a goal he obtained through the development of the company he founded, Canandaigua Brands Inc. It has grown to become America’s second-largest wine producer with well-known brands such as Richard’s Wild Irish Rose, J. Roget Champagne and Manischewitz. It also is the nation’s second-largest beer importer.
Sands moved to Canandaigua after World War II to take over a small bulk-wine producer. The business was launched in 1945 with the objective to sell bulk wine in barrels to bottlers in the East. Sands began his venture with just eight employees.
As the company grew, Sands knew he faced severe competition. He decided he needed a product that was new to the market. He found the perfect breakthrough in 1954 with the introduction of Richard’s Wild Irish Rose, a fortified wine.
Sands developed a unique franchising system that involved bottling in five locations across the United States. This allowed the brand to grow rapidly with minimal capital investment.
The Canandaigua Wine Co. developed its own wine-production facilities to meet the increasing demand for Wild Irish Rose. It became such a popular wine because it had an unusually sweet flavor made with Catawba grapes from the Finger Lakes region and it was inexpensive.
As this new wine gained recognition for the company, Sands was able to purchase the Tenner Brothers Winery in South Carolina. This followed Sands’ purchase of Mother Vineyard Co. and the Onslow Wine Co. of North Carolina. Sands used a strategy for growth that involved the acquisition of companies with established names in niche markets.
He continued this business plan by breaking into the market of sparkling wines with the purchase of the Hammondsport Wine Co. in 1965. Next, Sands headed out west and purchased the Bisceglia Wine Co. in Madera, Calif.
Over the next 20 years, Sands’ firm acquired several wine companies and continued to expand its product line. One of his most significant product launches was the debut of J. Roget Champagne in 1979. The brand rose to second among champagne marketed in the United States.
Later, Canandaigua Wine moved into the wine-cooler market, a popular trend in the early 1980s. At first, the fruity wine drinks, Sun Country Coolers, generated whopping sales of $100 million, more than half of the company’s overall $175 million in sales in 1984. But the trend faded, and by 1991 Canandaigua Wine had replaced its Sun Country business.
The purchase of Manischewitz Wine Co. and Widmer Wine Cellars expanded Canandaigua Wine’s product line even further; both were produced at the Widmer facility in Naples.
Sands decided at this time to pass the leadership of the company on to his sons. In 1992, Richard Sands was named CEO. The elder Sands remained chairman of Canandaigua Brands and continued to be involved in strategic decisions. The company continued making acquisitions with the purchase of Paul Masson, Almaden and Inglenook.
Up to this point, the firm was best known for its inexpensive wines. It began to make a name for itself in the premium-wine market, though, with the purchase of California’s Simi Winery Inc. and Franciscan Estates.
Sands wanted the finer things for his community as well. Among his numerous civic and philanthropic endeavors, he served as president of F.F. Thompson Hospital for more than 22 years and as chairman of the newly formed parent organization, F.F. Thompson Health Systems. Sands contributed $3 million to support the building of a senior citizen home and a cancer center. The Sands Cancer Center was inaugurated in April 2000.
A member of the board of overseers of the Rochester Philharmonic Orchestra, he played a key role in the construction of the Finger Lakes Performing Arts Center. He demonstrated leadership in his industry by serving as president of the Finger Lakes Wine Growers Association, as well as co-founding the American Vintners Association.
In 1984, he was voted Mr. Canandaigua.
Sands died at age 75 in 1999. His sons Richard and Robert are carrying on the family tradition at the company, renamed Canandaigua Brands Inc. in 1997 and Constellation Brands Inc. two years later. It markets more than 185 brands of beverages including wine, beer, spirits and bottled water, with distribution in North America and abroad.

10/05/01 (C) Rochester Business Journal