Constellation Brands Reports Decrease In Net Sales
Published:01-July-2009
By Staff Reporter
Total spirits net sales increase by 13%, led by 33% gain for SVEDKA Vodka
Constellation Brands has reported that the net sales decreased 15% for first quarter of fiscal 2010. Total spirits organic net sales increased 13% for the quarter, led by a 33% gain for SVEDKA Vodka.
Wines segment operating income decreased $8 million when compared to the prior quarter. This decrease is primarily due to the divestiture of the value spirits business and certain Pacific Northwest wine brands, negative mix and a decrease in international business performance partially offset by savings from cost reduction initiatives and gains from foreign currency transactions.
Branded wine organic net sales on a constant currency basis increased 1%, which includes a 1% decrease for North America, a 6% increase for Europe, and a 7% increase for Australia/New Zealand.
Rob Sands, President and CEO of Constellation Brands, said: "We are generally pleased with our quarterly results, which were in-line with our expectations. To strengthen our position as an industry leader, especially in this challenging economy, we took steps over the past 18 months to shift the focus of our strategy to building must-have brands that return the greatest profits and that represent good value for consumers. We are already seeing the benefits from this strategy as brands such as Woodbridge by Robert Mondavi, Nobilo, Clos du Bois, Kim Crawford and SVEDKA continue to perform well."
