USA: Constellation Brands recorded 9% increase in imported beer sales for Q2
Constellation Brands, Inc., a leading international producer and marketer of beverage alcohol, reported on October 5 about 9% increase in imported beers net sales for the second quarter.
The nine percent increase in imported beers net sales was primarily due to volume growth for Constellation's portfolio, which includes Corona and other Grupo Modelo brands, as well as St. Pauli Girl and Tsingtao, and reflected strong consumer demand throughout the summer season.
"Constellation's imported beer business delivered strong second quarter growth while managing lower than usual inventory levels of Corona and Corona Light due to a tight supply of bottles for these products," stated Sands. "The supply of bottles for these products is expected to improve during the second half of fiscal 2007. As announced on July 17, 2006, Constellation Brands and Grupo Modelo entered into an agreement to form a joint venture that will import and market beer in the United States and Guam. Named Crown Imports LLC, the joint venture is expected to become operational on Jan. 2, 2007. Crown Imports LLC will consolidate U.S. importation and marketing for Grupo Modelo brands for the first time, which offers exciting potential growth opportunities for the beer portfolio."
Beers and spirits segment operating margin declined 90 basis points for the quarter, primarily due to increased material costs for spirits, higher spending behind premium spirits and stock compensation expense recognition.
Constellation Brands, Inc., posted record second quarter net sales of $1.4 billion for the quarter ended Aug. 31, 2006 ("second quarter 2007"), up 19 percent over prior year, primarily due to the June 5, 2006, acquisition of Vincor International Inc. ("Vincor"), and from growth in the base business. Branded business net sales grew 20 percent. The increase was due to the addition of Vincor and seven percent growth for branded business organic net sales on a constant currency basis.
Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well-known brands in Constellation's portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Goundrey, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl, Tsingtao. For additional information about Constellation Brands, as well as its product portfolio, visit the company's Web site at www.cbrands.com.
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