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News
Constellation FY spirits sales slump
Mi Campo Tequila owner Constellation Brands saw sales grow by 5% in its full-year results for fiscal 2024, although spirits fell by 7%.
The company’s revenue for the 12 months to February 2024 reached US$9.96 billion, with US$2.14bn from the final three months of the year (Q4).
However, wine and spirits net sales declined by 9% for the full year and by 6% for Q4. Constellation said these results were in line with its revised outlook, which it announced in its Q3 results.
Net sales for wine and spirits totalled US$1.8bn for the full year, of which spirits contributed US$247 million.
The firm expects wine and spirits net sales in fiscal 2025 to be between a decline of 0.5% and a growth of 0.5%, while strong beer sales could encourage its total net sales to grow between 6% and 7%.
The company reported a 4% decline for wine and spirits sales in fiscal 2023.
Bill Newlands, president and chief executive officer, said: “As we head into fiscal 2025, we remain confident and excited about the growth trajectory of our beer portfolio. We continue to see growth potential in our wine and spirits business as we focus on strong commercial and operational execution.”
Sam Glaetzer was appointed executive vice-president and president, wine and spirits division in March 2024, following the departure of Robert Hanson, who left prior to the announcement of the company’s third-quarter results.
During ProWein 2024, Constellation Brands’ Taco Lucassen told The Spirits Business that the firm was seeing demand for its spirits grow in the Middle East.