Constellation Looks To Leverage Innovation Pipeline As Summer Heats UpJune 30, 2021
Constellation Brands reported sales up 3% organically to $2 billion for its fiscal first quarter ending in May, as operating income increased 5% to $723 million. Growth continues to be led by the company’s beer business, whose depletions accelerated to 11% growth in the quarter. Meanwhile, Constellation is rolling out a number of new products among its key wine brands, as it looks to continue premiumizing that part of the business.
This quarter, Constellation will launch new premium wines including a Saldo Red Blend, The Prisoner Unshackled Sauvignon Blanc, and Robert Mondavi Private Selection 100% Cabernet Sauvignon and Chardonnay varietals, and it will take its better-for-you label Kim Crawford Illuminate into national distribution. In the most recent quarter, Constellation’s wine and spirits unit saw organic shipment volume increase 6.3% to 6.7 million 9-liter cases, while organic net sales rose 16% to $455 million.
While Kim Crawford, Meiomi, and The Prisoner continue to drive gains for the company, it said results on the wine and spirits side “were impacted by a convergence of isolated factors which include global supply chain logistics, route to market changes, and the company’s transition to SAP, which collectively caused an out of stock situation for certain key SKUs.” For its full current fiscal year, Constellation is expecting its wine and spirits business to see organic net sales growth of 2%-4%.—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