Constellation’s Full-Year Sales Reach $9.45 Billion On 7% Growth
April 6, 2023Constellation Brands has posted sales up 7% to $9.45 billion for its fiscal year ended in February, with operating income rising 3% to $3 billion on a comparable basis. The solid full-year numbers came despite a shipment slowdown in the fourth quarter, which led sales and net income to decline 5% and 10% respectively in the three months through February.
Constellation’s beer unit, constituting almost 80% of the company’s total sales, grew revenues 11% to $7.5 billion for the year on shipments up 7% to 389 million (2.25-gallon) cases. Operating income advanced 6% to $2.9 billion. Modelo Especial and Modelo Chelada saw depletions rise 9% and 45% for the year, complemented by 4% growth for Corona Extra and ongoing gains for Pacifico. While shipments fell 5% in the fourth quarter, depletions continued to rise, increasing 6%.
On the wine and spirits side, Constellation remains focused on its premium and fine wine brands and craft spirits. Its largest fine wine brand, The Prisoner Wine Co., saw depletions rise by high single-digits for the year, while High West whiskey grew by low double-digits. Both of those labels are within the company’s Aspira fine wine and craft spirits unit. Its Ignite portfolio of premium and mainstream brands is led by Kim Crawford and Meiomi, both of which posted depletion gains in the mid single-digits.
Overall, the wine and spirits division’s organic net sales slipped 2% to just under $2 billion for the fiscal year, on shipments down 8% to 27 million 9-liter cases (depletions fell 3%). Operating income decreased 4% to $453 million but turned positive in the fourth quarter—boosted by a favorable product mix—even as shipments declined 19%.
For its current fiscal year ending next February, Constellation’s beer business is targeting net sales and operating income growth of 7% to 9% and 5% to 7% respectively. The wine and spirits division’s net sales are expected to come in between a 0.5% decline and 0.5% increase on an organic basis, with operating income up 2% to 4%.—Daniel Marsteller
| Constellation—Leading Wines & Spirits In The U.S. Retailing At $15 And Up1 (thousands of 9-liter case depletions) |
|||||
| Brand | Origin/Type | 2021 | 2022 | Percent Change2 |
|
|---|---|---|---|---|---|
| Meiomi | California | 1,699 | 1,827 | 7.5% | |
| Kim Crawford3 | New Zealand | 1,707 | 1,659 | -2.8% | |
| Simi | California | 551 | 536 | -2.8% | |
| Ruffino Prosecco | Italy | 476 | 529 | 11.1% | |
| The Prisoner | California | 267 | 287 | 7.5% | |
| Unshackled | California | 139 | 175 | 25.6% | |
| High West | Bourbon/Rye | 146 | 170 | 16.4% | |
| Kim Crawford Illuminate | New Zealand | 102 | 170 | 66.0% | |
| Total4 | 5,089 | 5,353 | 5.2% | ||
| 1 At least $15 a 750-ml. 2 Based on unrounded data. 3 Excludes Illuminate, includes RTDs 4 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2023 |
|||||
Tagged : Constellation Brands, Corona, High West, Kim Crawford, Meiomi, Modelo Especial
