Constellation spirits sales slump in Q2

Mi Campo Tequila owner Constellation Brands saw sales grow by 7% in the second quarter of fiscal 2024, however spirits plummeted by double digits.

For the three months to 31 August 2023, the company saw its revenue reach US$2.84 billion.

However, wine and spirits net sales dropped by 14% to US$444.1 million for the second quarter (Q2), compared with US$515.8m in Q2 2023.

Spirits reported the largest decline compared to beer and wine, falling by 18% to US$60.2m, compared with US$73.8m in Q2 2023.

Wine dropped by 13% while beer, the firm’s biggest business, reported a 12% increase.

The results show a continued decline for the firm’s spirits portfolio, with the company having reported a 4% decline for wine and spirits sales in fiscal 2023.

Its craft spirits portfolio, which includes Mi Campo Tequila and High West Whiskey, delivered more than 30% depletion growth. Mi Campo achieved more than 60% depletion growth, taking over from High West as the company’s largest craft spirits brand.

For fiscal 2024, Constellation expects wine and spirits sales to range between a decline of 0.5% and an increase of 0.5%, and operating income to grow by between 2% to 4%.

Bill Newlands, president and chief executive officer, said the company continues to predict “solid growth acceleration and margin improvement from our overall wine and spirits business in the second half”.

Constellation Brands also owns Svedka Vodka, Casa Noble Tequila and American whiskey maker Nelson’s Green Brier.

In July this year, the brand’s chairman Rob Sands announced he was stepping down.