Constellation Brands (CB), an US-based producer and marketer of beer, wine and spirits which is mainly known through its portfolio of Mexican beers (Corona, Modelo), Svedka vodka and Robert Mondavi wines, has published its “second quarter” results for the three months ended August 31, 2018
CB’s results of operations benefited primarily from improvements in both the beer segment on one side and the wine and spirits segments on the other side. The company also took advantage of an unrealized gain from the changes in fair value of its investments in Canopy Growth, a cannabis company, in which CB owns 38 percent since its last investment in August. (inside.beer, 15.8.2018)
Net beer sales increased by 11 percent from $1,381.7 million in the three months ended August 31, 2017 to $1,527 million in the same period one year later. The increase in beer net sales is primarily due to volume growth within the Mexican beer portfolio of $119.7 million, which benefited from continued consumer demand, increased marketing spend and new product introductions, and a favorable impact from pricing in select markets within CB’s Mexican beer portfolio of $24.8 million.
Constellation CEO Rob Sands said: “The double-digit EPS growth we delivered in the second quarter is top-tier for consumer product companies. Constellation remains the high-end leader and the most significant growth contributor in the US beer market, and we’re seeing strong growth trends for the super-premium plus segment of our wine portfolio.”
“Our $4 billion investment in Canopy Growth provides us with a strong foothold in the emerging global cannabis market, which could be one of the most significant growth opportunities of the next decade.”
CB already grows ahead of the market for a longer time. Last year at the same time, CB reported a rise in sales in the second quarter by nearly 13 percent. (inside.beer, 5.10.2017)