Corona Extra sales continue to rise
Americans’ summertime preoccupation with barbecues and beer has again been a boon to Constellation Brands’ top and bottom line. When the number three brewer in the US released its second quarter (ended 31 August) earnings report on 5 October 2016, it revealed that sales and profit were higher than what Wall Street had expected, due in no small part to the strength of its beer segment.
Second quarter revenue came in at USD 2.02 billion, up 17 percent over the same quarter last year. Net income for the quarter stood at USD 358.9 million, up from USD 302.4 million in the prior-year period.
Constellation attributed these results to a 20 percent increase in net beer sales and a 12 percent increase in wine and spirits net sales.
In 2015 Constellation bought the craft brewer Ballast Point for USD 1 billion. Its beer division sold nearly 19 million hl beer in 2015 according to Beer Marketers’ Insights.
Constellation also announced that it is acquiring the Utah-based distillery High West for USD 160 million. The acquisition, which includes all of High West’s operations and its portfolio of American straight whiskeys, is expected to close by the end of October, and underlines that Constellation is seeking to enter the profitable, high-end craft whiskey segment.
Founded in 2009, High West sells 70,000 cases (9 litres each) annually and has experienced double digit volume growth, according to Constellation. Among the bidders for High West were France’s Pernod Ricard and LVMH (Moët Hennessy Louis Vuitton).
