Constellation Brands announces Q2 2018 results
Q2 sales increase 3 percent
In a conference call to investors, Victor, N.Y.-based Constellation Brands Inc. announced second quarter net sales for fiscal year 2018 were nearly $2.1 billion, a 3 percent increase.
Highlights from this quarter included the following:
- Constellation’s Beer business drove more than 60 percent of high-end category growth and claimed three of the Top 10 share-gaining spots in the U.S. beer market.
- Its 120 Days of Summer marketing campaign drove beer business market share gains during the July Fourth holiday, which continued throughout the summer selling season and into Labor Day.
- Wine and Spirits Focus Brands delivered depletion growth of more than 12 percent led by Black Box, Robert Mondavi Private Selection, Meiomi, Kim Crawford, Woodbridge by Robert Mondavi and Svedka vodka.
The second quarter also featured the acquisition of craft brewer Funky Buddha. The addition of Funky Buddha to the craft beer portfolio advances the company’s strategy of leading the high-end U.S. beer market, it says. Funky Buddha is a fast-growing craft brewery in Florida with an award-winning portfolio led by Floridian Hefeweizen and Hop Gun IPA, the company adds.
Within the wine and spirits division, the company highlighted the acquisitions of The Prisoner and Charles Smith wine brands, as well as High West Whiskey, which delivered depletion growth of 30 percent, 74 percent and 37 percent, respectively.
“Our second quarter results are a testament to the fact that our total beverage alcohol (TBA) strategy is paying off,” Constellation Brands Chief Executive Officer and President Rob Sands said in a statement. “We remain the leader in the high-end of the U.S. beer market, and we are reaping the benefits of our wine and spirits premiumization efforts. Strong execution, coupled with smart portfolio and operational investments, continue to fuel our growth and solidify our leadership position across TBA.” BI