Constellation slashes spirits forecast
Mi Campo Tequila owner Constellation Brands saw sales rise by 1% in the third quarter (Q3) of fiscal 2024, although spirits fell by 10%.
For the three months to 30 November 2023, the company saw its revenue reach US$2.47 billion.
However, wine and spirits net sales dropped by 11.6% to US$502.4 million for Q3, compared with US$544.6m in Q3 2023.
Spirits continue to be Constellation Brands’ poorest-performing category, falling by 10% to US$66.6m, compared with US$74.1m in Q3 2022. In its Q2 results, spirits declined by 18%.
In light of these results, the business has revised its fiscal 2024 outlook – for the year to the end of February – and expects its wine and spirits division to decline by 7% to 9%. It had previously anticipated at worst a decline of 0.5%.
Prior to releasing the results, Constellation Brands announced that Robert Hanson, executive vice-president and president of the company’s wine and spirits division, was stepping down.
The company reported a 4% decline for wine and spirits sales in fiscal 2023.
Bill Newlands, president and chief executive officer, described the company’s beer category as having an “outstanding performance” which “reinforced our conviction in our fiscal 2024 enterprise outlook, despite an adjustment to our wine and spirits business guidance due to near-term headwinds in the wine market.”
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