proportion of its spirits business in the brown sector, than the industry at large. Further, brands such as Barton, Sköl and Fleischmann’s provide the company with a very strong represen- tation in the vodka category, the largest of all segments in the U.S. spirits industry. that of the entire category – up a full three percent. As the top growth  performer in its category, Black Velvet gained critical market share in this important sector. Overall, Black Velvet is the 16th leading distilled spirit brand in the U.S., and the number one seller in three states. After a complete repackaging last year, Black Velvet Reserve, a premium 8-year-old Canadian Whisky, experienced a 29 percent case growth. This is another example of Constellation’s strategy of investing marketing funds behind higher-margin premium brands to maximize returns. Constellation Spirits’ leadership position, broad portfolio of popular priced brands and expanding breadth of premium niche spirits beverages have benefited from the overall growth in the spirits industry over the past six years. Several demographic trends have contributed  favorably to spirits consumption, as have timely innovations throughout the industry and the renewed popularity of classic cocktails. Constellation Spirits’ strategy is to maintain our strength where we have  a major presence, and invest in higher- margin opportunities in underserved categories. Recent new product extensions and developments support this philosophy. Beachcomber flavored rums are a powerful addition to one of the fastest growing product groups in the spirits industry. Featuring four popular flavors: coconut, pineapple, spiced and apple, Beachcomber rums generated shipments of almost 25,000 cases in their first year.  Chi-Chi’s added Mango Margarita to its line of pre-mixed cocktails last year, which helped boost brand sales over six percent. Because of the volume of Black Velvet and its other whisky brands, Constellation Spirits has a significantly higher  Constellation Spirits serves distributors and customers with a full portfolio of white, brown and specialty distilled spirits. Brown spirits include Scotch, American blends, Canadian Whisky and bourbon, while the white category covers gin, vodka, rum and tequila. Specialties include brandy, cordials and prepared cocktails. Constellation Spirits’ leading brand is Black Velvet Canadian Whisky. As an industry, all Canadian Whiskies grew only 0.3 percent last year. Sales growth for Black Velvet, however, was tenfold Constellation Spirits is the third largest U.S. spirits company by volume, with a 10 percent share of the market. Because the industry is highly regionalized,  with smaller producers holding strong niche positions, the importance of Constellation Spirits’ ranking as either number one or number two in Wisconsin, Kentucky, Nebraska, Iowa Montana, New York, Georgia, Florida, Colorado and Arizona is noteworthy. EXTENSIVE PORTFOLIO  LEADING INDUSTRY POSITION  SUCCESSFUL PRODUCT INNOVATION 18 Constellation Spirits is the third  largest U.S. spirits company  by volume, with a 10 percent  share of the market.