Constellation Brands reports gross sales rose 1.8% to $2.573 billion in the fiscal second quarter, ended Aug. 31, but a loss attributed to “unconsolidated investments” (i.e., CBrands investment in Canopy Growth) of $1.325 billion resulted in a net loss of $525.1 million. In the 2018 second quarter, CBrands had recorded a $1.1450 billion profit.
The beer business reported sales of $91.9 billion, up 5.3% from the like year-earlier period. Adjusting for selling day impact beer depletions rose 6.2%. The company said the depletion growth was driven by Modelo Especial, “which generated the most growth for the entire U.S. beer category and depletion growth of 15%.” Corona Refesca became a “top 5” U.S. high-end beer market share gainer, with accelerating depletion growth throughout the summer months, the company said. Corona Premier became achieved double-digit distribution growth and became the fast-growing beer on premise.
Wine and spirits shipments fell 10% to 14.4 million cases. Net sales were down 8.9% to $703.6 million. “The wine and spirits business continues to be impacted by transition activities with distributors who are repositioning for ownership of brands upon close of the impending transaction with E&J Gallo,” CBrands said.
Power brands depletions eased 4%, as the company discontinued some promotional retail activities. “However, Power Brand marketplace performance continues to outpace the overall U.S. wine and spirits category with brands like Kim Crawford, Ruffino, Meiomi and Cooper & Thief generating double-digit growth in IRI channels in the third quarter.
Woodbridge continued to accelerate in IRI channels, with the company attributing that to its new marketing campaign which boosted sales 2%. Svedka’s “Bring Your Own Spirit” national advertising campaign resulted in continued share gains, the company said.