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Constellation’s Sales Hit $8.8 Billion In Full Fiscal Year

April 7, 2022

Constellation 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

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