Constellation Brands reports net sales of $2.44 billion, a 22% increase from the year-earlier third fiscal quarter as both the company’s beer business and its wine and spirits business did well. Net profit exploded, soaring 3.55 times the year-earlier figure to $1.289 billion, or $6.55 a share.
Constellation’s Beer Business posted double-digit depletion growth of 12%, as inventory levels improve and strong performance in off-premise channels continues to more than offset the COVID-19 impact of the approximately 35% reduction in the on-premise channel.
Modelo Especial achieved nearly 20% depletion growth and was
the #1 Import share gainer in IRI channels and the Corona Brand Family grew nearly 12% in IRI channels driven by Corona Premier, which grew more than 20%, Corona Extra, and Corona Hard Seltzer.
Corona Hard Seltzer continued to exceed expectations as velocity and distribution of nearly 70% ACV in IRI channels remain strong; hard seltzer innovation expected to launch in early fiscal 2022 with the introduction of Variety Pack #2.
Pacifico posted growth of almost 35% in IRI channels, and was a
top share gainer within the import segment.
Shipment volumes significantly outpaced depletion volumes as product inventories begin to rebuild from the Mexican g0vernment’s decision to halt Mexican beer production earlier this year in an attempt to halt the spread of Covid-19. Due to continued robust consumer demand, product inventories
are now expected to return to normal levels during the fourth quarter fiscal 2021 as shipment volume is expected to continue to outpace depletion volume for the remainder of the fiscal year.
CBrands’ Beer Business is targeting 7 – 9% net sales growth and 8 – 10% operating income growth for fiscal 2021, the company said.
Wine & Spirits
Constellaton Brands shipped 13.2 million cases of wines and spirits, a 3.1% increase from the like year-earlier quarter. Net sales rose 10% to $760.2 million, the company said.
Marketplace performance for higher-end wine Power Brands outpaced the total higher-end wine category driven by double-digit growth for Kim Crawford, Meiomi, and The Prisoner Brand
Family.