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Spirits soar for Constellation as wine falls
High West Whiskey owner Constellation Brands saw wine and spirits net sales decline by 7% in the first quarter (Q1) of fiscal 2025.
The division has been declining since fiscal 2023. The division’s sales were driven by a decrease for wine, which fell by 9%. Spirits, on the other hand, rose by 8%.
Total sales grew by 6% to US$2.6 billion, led by 8% growth for its beer brands.
Bill Newlands, the firm’s president and CEO, said: “Our wine and spirits business is making good progress against the operational and commercial execution initiatives identified in Q4 of fiscal 2024 to support its trajectory toward this year’s guidance. All in, we continue to make progress and remain focused on our fiscal 2025 outlook.”
Its spirit brands include Mi Campo Tequila, Svedka Vodka and Nelson’s Green Brier whiskey.
In its full-year 2024 results, Constellation said it expected wine and spirits net sales in fiscal 2025 to be between a decline of 0.5% and a growth of 0.5%. It reaffirmed these expectations in its Q1 results.
Net sales for wine and spirits totalled US$389m for the quarter, of which spirits contributed US$59.7m.
Constellation made significant changes to its spirits executive team earlier this year, with Sam Glaetzer appointed executive vice-president and president for wine and spirits division in March 2024. His predecessor, Robert Hanson, left prior to the announcement of the company’s third-quarter results.
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