United States: Constellation Brands reports 3% drop in beer sales in Q1

Constellation Brands Inc., the seller of the US’ most popular import beer Corona, said on July, 1 its first-quarter net income surged more than sevenfold with distribution improvements, even as its revenue slipped.

However, beer sales in its joint venture with Mexican brewer Grupo Modelo SA fell 3 percent to $622 million. The venture's operating income, hurt by lower volume and marketing costs, dropped 14 percent to $109 million.

Rob Sands, president and chief executive officer, Constellation Brands, nevertheless said the company was encouraged by improving market trends in its U.S. beer businesses.

Constellation Brands, based in Victor, N.Y., 20 miles southeast of Rochester, imports beers such as Corona and Negra Modelo from Mexico, Tsingtao from China and St. Pauli Girl from Germany.

After a two-decade acquisition spree, the company sold off some of its lower-price brands. It also has sold off unprofitable brands, consolidated divisions and cut its work force to 6,000 people from 8,200 in 2008.

02 July, 2010