Constellation Toasts Double-Digit Beer Growth In Third Quarter, Wine And Spirits Up 3%January 8, 2014
Strong growth at its newly consolidated Crown Imports beer business drove a sharp rise in net sales for Constellation in the three months through November, representing the company’s fiscal third quarter. Overall, Constellation posted net sales up 88% to $1.4 billion for the period, including a $662 million incremental gain from the consolidation of Crown, completed in June.
Crown’s sales growth was at 21% for the third quarter, with Corona and Modelo Especial driving gains. Constellation CEO Rob Sands noted that Modelo Especial’s new Chelada extension is exceeding expectations, while the brand is also benefiting from wider draft availability.
Meanwhile, Constellation’s wine and spirits net sales rose 3% to $782 million in the third quarter, as an increase in wine volume was partially offset by lower bulk spirits sales. Sands said the company’s wine business—including Rex Goliath, Kim Crawford, Mark West, Black Box, Ruffino and other brands—is outperforming the U.S. wine market across all channels on a volume basis, driven by investments behind the portfolio. For the first nine months of Constellation’s fiscal year, its overall net sales were up 70% to $3.58 billion.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.