E-Malt.com News article: USA: Crown Imports generates higher net sales in FY 2012

Constellation Brands, the world's leading premium wine company, said on April, 5 its equity earnings from its 50 percent interest in the Crown Imports joint venture totaled $215 million in fiscal 2012, a decrease of five percent from the prior year.

For fiscal 2012, Crown generated net sales of $2.5 billion, an increase of three percent, and operating income of $431 million, a decrease of five percent. The increase in net sales was primarily driven by volume growth. Operating income decreased primarily due to higher marketing spend, Constellation Brands said.

"Crown had a great year in the marketplace, as it outperformed the U.S. beer industry, the import category and the other major U.S. suppliers in both case and dollar sales due to product innovation, creative advertising campaigns and strong market execution," said Rob Sands, president and chief executive officer, Constellation Brands. "Crown posted mid-single digit depletion growth. This growth was driven by Victoria, which is already a "top 25" import brand, Corona Familiar, which reached more than 3.5 million cases in depletions and the double digit growth for Modelo Especial, which recently achieved the 35 million case milestone."

In the fourth quarter of the reporting period, Constellation's equity earnings in the Crown Imports joint venture totaled $49 million, an increase of two percent from the prior year fourth quarter.

For fourth quarter 2012, Crown generated net sales of $525 million, an increase of nine percent, and operating income of $99 million, an increase of two percent. The increase in net sales for Crown was primarily driven by volume growth. Operating income increased primarily due to higher net sales partially offset by increased marketing spend.

Crown Imports, a 50-50 joint venture between Constellation Brands, Inc. and Mexico’s leading brewer Grupo Modelo, S.A. de C.V., imports, distributes and markets the most attractive imported beer portfolio across the U.S. The Crown portfolio includes Corona Extra, the #1 imported beer in the U.S. and #6 beer overall, Corona Light, Modelo Especial, Negra Modelo, Pacifico, St. Pauli Girl and the Tsingtao beer brands.



05 April, 2012