Constellation’s First Half Is Boosted By Crown ImportsOctober 3, 2013
Constellation Brands enjoyed a net sales increase of 60% to $2.1 billion in its fiscal first half ended August 31, lifted by the addition of the half of Crown Imports’ beer business that it didn’t already own. The newly consolidated Crown’s depletions were up 7% in the second quarter. Growth trends improved on Corona Extra and Corona Light, the company said, and Modelo Especial continued to drive Crown’s sales with a double-digit depletions increase.
Constellation’s wine and spirits sales were up 3% to $1.4 billion in the first half, with wine up 4% and spirits slipping 8%. Wine and spirits shipment volume was up 2.9% to 32 million cases on an organic basis, with depletions up 1.9%.
Constellation CEO Rob Sands said higher promotional expenses and lower spirits volume led to a 1% decline in wine and spirits net sales in the second quarter, but added, “We expect most of our growth for the wine and spirits business to be generated during the second half, resulting from the timing of shipments.” Sands said new brands and line extensions like Milestone, Rosatello, Hidden Crush, V.No, Saved and Black Velvet Cinnamon Rush are also part of the growth strategy for the second half.
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