Constellation records solid Q1 sales
US firm Constellation Brands reported a ‘strong start’ to fiscal 2023, with net sales for its wine and spirits arm up by 2%.
The company’s total sales climbed by 17% to US$2.36 billion for the first quarter, with its beer business leading growth (up by 21%).
‘We’re pleased with our strong start to the fiscal year,” said Bill Newlands, president and CEO. “Across the business we’re driving consumer demand for our exceptional portfolio of premium, high-end products while executing strong financial and operational performance.”
Constellation Brands’ wine and spirits net sales reached US$465 million for the three months to 31 May 2022. Operating income for the unit fell by 13% to US$91m.
The firm’s wine and spirits arm was boosted by double-digit growth from High West Whiskey and Casa Noble Tequila, as well as Meiomi Wines and The Prisoner Wine Company.
The four brands sit within the company’s fine wine and craft spirits unit, which rose by 16% during the three-month period.
Constellation expects its wine and spirits division to decline by between 1% and 3% in net sales for fiscal 2021, with operating income predicted to drop by 4%-6%.
The beer business, on the other hand, is expected to post a net sales growth of 7%-9% for the year ending 28 February 2023.
Earlier this year, Constellation acquired the remaining stake in ready-to-drink (RTD) producer Austin Cocktails for an undisclosed sum.
In June 2021, Constellation Brands expanded its presence in agave spirits with the purchase of a minority stake in Dos Hombres Mezcal, founded by Breaking Bad actors Aaron Paul and Bryan Cranston.
The company also partnered with The Coca-Cola Company to create a line of RTD cocktails under the latter’s Fresca soft drink brand.