Posted: Apr 09, 2021
Constellation’s STZ -4.6% sell-off of its lower-priced wine brands to E&J Gallo seems to be paying off in terms of promoting their “premiumization” strategy in the wine arena.
In an earnings call with investors today, President and CEO Bill Newlands reported, "Our retained wine and spirits portfolio, excluding divested brands, delivered net sales growth of 5% for the year, driven by double digit volume growth for Meiomi, Kim Crawford and the Prisoner Brand Family."
Newlands also admitted that these three “wine power brands” achieved double digit distribution growth. Part of this growth had to do with the introduction of line expansions, such as Meiomi Cabernet Sauvignon, the Prisoner Unshackled, and Kim Crawford Illuminate – a lower alcohol, lower calorie wine.
However, it was beer sales, especially Modelo, that claimed most of the credit for driving Constellation sales growth for their fiscal year, which runs from March 1, 2020 to February 29, 2021. Constellation’s beer business posted depletion growth of more than 7%.
By Liz Thach
Source and complete article by: forbes.com
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