Constellation’s Sales Top $8.6 Billion In Full Fiscal YearApril 8, 2021
Constellation Brands saw sales climb 3% on a comparable basis to $8.6 billion in the 12 months through February, as operating income increased 6% to $2.9 billion. Constellation’s beer unit—accounting for just over 70% of the business—is driving strong growth, while the company continues to streamline and premiumize its wine and spirits portfolio.
Led by gains for its Mexican import stable, Constellation’s beer division posted organic net sales up 10% to $6.1 billion for the year, and operating income increased 11% to $2.5 billion. Organic shipment volume grew by 8% to 335 million (2.25-gallon) cases. Depletions advanced by 7%, with the company noting that “strong performance in off-premise channels more than offset the Covid-19 impact of the 51% reduction in on-premise channels.” Modelo Especial led the charge, posting depletions growth of 12% to become the third-largest beer brand overall in the U.S., the company said. The Corona franchise has been driven by its Hard Seltzer and Premier labels recently, and Constellation will look to extend those gains with the launch of a Corona Hard Seltzer Limonada in June.
On the wine and spirits side, organic net sales rose 2% to $2.5 billion, led by Kim Crawford, Meiomi, The Prisoner Brand Family, and High West. Organic shipment volume was down 4.9% to 45 million 9-liter cases as the company transitioned out of the below-$11 wine business via its recently completed sale of a host of accessibly priced brands to E.&J. Gallo. Operating income fell 12% to $622 million, weighed down by costs related to the California wildfires. Constellation said its retained portfolio of wine and spirits following that divestiture was up by 5% for the year, and added that recent launches like Meiomi Cabernet Sauvignon, Kim Crawford Illuminate, and The Prisoner Unshackled are making a positive impact.
Looking ahead, Constellation said it’s targeting net sales growth of 7%-9% for its beer business in the new fiscal year ending next February, with organic wine and spirits net sales expected to grow in the range of 2%-4%. Chief executive Bill Newlands said the drinks giant remains “well positioned for continued execution of our growth and premiumization strategy.”—Daniel Marsteller
|Constellation’s Top Wine & Spirits Brands in the U.S.1
(thousands of 9-liter case depletions)
|1||Woodbridge by Robert Mondavi||California||9,575||9,392||-1.9%|
|3||Robert Mondavi Private Selection||California||2,212||2,322||5.0%|
|5||Kim Crawford||New Zealand||1,366||1,615||18.2%|
|10||The Dreaming Tree||California||426||402||-5.6%|
|Total Top 13||24,756||25,180||1.7%|
|1 Excludes brands divested in 2020 and 2021.
Source: IMPACT DATABANK © 2021
Tagged : Constellation Brands