E-Malt.com News article: USA: Constellation Brands encouraged by the strength of its import beer business in Q2

Constellation Brands Inc's quarterly earnings beat Wall Street estimates, and the world's largest branded wine company forecast strong results for the fiscal year, helped by new brands and increased promotional spending, Reuters reported on October, 5.

The company, whose labels include Corona Extra beer, Robert Mondavi and Ravenswood, said on October, 5 that it expected to earn between $2.00 and $2.10 a share for the year. It had earlier forecast $1.93 to $2.03.

Analysts on average were expecting a profit of $1.98 a share, according to Thomson Reuters I/B/E/S.

The company had said in June that it would buy the remaining half of its Crown Imports joint venture with Grupo Modelo SAB de CV in a $1.85 billion deal that gives it full control of distributing Corona Extra beer, the best-selling import, in the United States.

On October, 5, Chief Executive Officer Rob Sands said the transaction is still set to close in the first quarter of calendar 2013.

"As we execute our profitable, organic growth strategy, we are encouraged by the strength of our core beer, wine and spirits businesses including the success of our new product introductions and innovation pipeline across our entire portfolio of outstanding brands," said Rob Sands. "We remain excited about the prospect of owning 100 percent of Crown Imports, which represents a transformational step for our company as it will solidify Constellation's position in the U.S. beer industry for the long term. This transaction is still targeted to close during the first quarter of calendar 2013."

"The second quarter marks the tenth consecutive quarter that Crown has outperformed the U.S. beer industry and the import category driven by strong portfolio performance led by Modelo Especial," said Sands. "Crown's marketplace execution is also being fueled by creative advertising and retail programs including the 'Win Your Beach' sweepstakes promotion, Corona's 'Find Your Beach' campaign and Corona Light's new 'Refreshing Change of Beer' ads."

In the second quarter ended August 31, Constellation's net income fell to $125 million, or 67 cents per share, from $162.7 million, or 76 cents per share, a year earlier.

Excluding restructuring charges, the company earned 71 cents a share, while analysts on average were expecting 54 cents.

Revenue rose to $699 million from $690 million.


05 October, 2012