Constellation Sales Up 6% In Third Quarter, Driven By Strong Beer Growth And MeiomiJanuary 7, 2016
Constellation Brands has reported a 6% net sales rise, to $1.64 billion, for its fiscal third quarter ended in November, as the group’s net income also rose, up 22% to $271 million on the same period last year. Progress was led primarily by the group’s beer business, which grew sales 8% over the quarter, bolstered by depletions growth of more than 16%.
The majority of Constellation’s beer portfolio posted double-digit gains over the three-month period, with the Corona Extra and Modelo Especial brands, in particular, demonstrating “accelerating momentum,” said Constellation president and CEO Rob Sands. Constellation also revealed its intention to develop a new $1.5 billion brewery in Mexicali, Mexico, to support growth.
Meanwhile, Constellation’s wine and spirits net sales grew 3%, buoyed by the company’s recent acquisition of the Meiomi wine brand, which was up more than 80% in IRI channels over the three-month period. Other third quarter wine highlights included the Kim Crawford, The Dreaming Tree, Mark West, Ruffino and Clos du Bois brands, all of which posted solid depletions gains.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.