Constellation Brands has said that it expects that its beer business, which includes the Modelo brand, will report net sales growth of between 9% and 10% in its fiscal full year, following a strong Q3.
Constellation reported a 5% increase in net sales in its third quarter, to $2.437 billion (€2.32 billion), with its beer portfolio seeing net sales rise 8% for the first nine months of the year.
Beer Performance
The company cited the 'continued growth' of its Modelo Especial and 'strong momentum' of Modelo Chelada as drivers of its growth, noting that its beer brands outpaced the wider beer category.
"Our beer business continued to outperform the market as the top share gainer for the sixth consecutive quarter," Bill Newlands, president and chief executive, commented.
Wine and Spirits
The group's wine and spirits business found the going tougher, however, reporting a 4% decline in net sales, while shipments were down 14.8%. However, its premium wine and craft spirits portfolio outperformed, the company added.
The group expects its wine and spirits arm to reported an organic net sales decline of between 0% and 2% in its full fiscal year.
"Our wine and spirits business further advanced its strategy with our largest higher-end brands delivering growth significantly above the category segments," Newlands said.
Looking ahead to the remainder of the year, Newlands noted that the business was confident that it could "continue to build on our strong track record of solid growth and value creation".
© 2023 European Supermarket Magazine – your source for the latest drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
