Constellation’s Sales Hit $8.8 Billion In Full Fiscal Year
April 7, 2022Constellation Brands posted sales up 2% on a comparable basis to $8.8 billion in the company’s fiscal year ended in February, as operating income grew 2% organically to $2.9 billion. Growth picked up in the fiscal fourth quarter, as sales grew 8% and operating income advanced by 17%.
Constellation’s growth was driven by its beer business, whose annual sales rose 11% to $6.8 billion, with operating income up 8% to $2.7 billion. According to Impact Databank, leading beer label Modelo Especial surged 14% to 164 million (2.25-gallon) cases in calendar 2021, while Corona Extra rose 8% to 119 million cases. From a smaller base, Pacifico (+11% to 14m cases), Corona Premier (+5% to 12m cases), and Modelo Chelada (+33% to 11m cases) also contributed solid gains. To bolster future growth, Constellation is planning to pour $5 billion to $5.5 billion in capital expenditures into the beer unit through fiscal 2026, supporting an additional 25 million to 30 million hectoliters of total capacity, including construction of a new brewery in Southeast Mexico in the state of Veracruz.
On the wine and spirits side, Constellation’s sales grew 9% on an organic basis to $2.1 billion during the fiscal year, with Meiomi, Kim Crawford, and The Prisoner driving gains. Organic shipment volume rose 2.7% to 30 million 9-liter cases for the year, while operating income fell 24% to $471 million as the company lapped its divestiture of a host of brands to E&J Gallo the previous year (operating income was up 6% to $122 million in the fourth quarter). Better-for-you entry Kim Crawford Illuminate has received a strong reception, Constellation noted, as have The Prisoner Pinot Noir and Woodbridge’s 3-liter box variant.
For its current fiscal year, Constellation is expecting the beer unit to post net sales growth of 7% to 9%, and operating income growth of 2% to 4%. The wine and spirits business is expected to see net sales decline by 1% to 3%, while posting operating income growth of 4% to 6%.—Daniel Marsteller
| Constellation—Leading Wines & Spirits In The U.S. Retailing At $15 And Up1 (thousands of 9-liter case depletions) |
|||||
| Brand | Origin/Type | 2020 | 2021 | Percent Change2 |
|
|---|---|---|---|---|---|
| Kim Crawford | New Zealand | 1,615 | 1,810 | 12.0% | |
| Meiomi | California | 1,545 | 1,699 | 10.0% | |
| Simi | California | 578 | 551 | -4.5% | |
| Ruffino Prosecco | Italy | 446 | 476 | 6.8% | |
| The Prisoner | California | 227 | 267 | 17.7% | |
| High West | Bourbon/Rye | 132 | 146 | 10.5% | |
| Total3 | 4,543 | 4,949 | 8.9% | ||
| 1 At least $15 a 750-ml. 2 Based on unrounded data. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2022 |
|||||
Tagged : Constellation, Corona, Kim Crawford, Modelo, The Prisoner, Woodbridge
