On Wednesday, Constellation Brands will report its second-quarter and half-year results for fiscal-2017. Here, just-drinks takes a look at the company’s activities in the three months to the end of August.
- Figures released in mid-June gave the company reason to cheer: according to Neilsen data, sales volumes of Mexican beer brands in the US during the three months to 21 May outperformed the broader beer market. While overall volumes dipped by 1.5% year-on-year, Constellation’s Mexican portfolio saw its volumes climb by 11%.
- Following the release of results for the fiscal first quarter (see below), CEO Rob Sands said in a related conference call that the group’s Ballast Point craft beer unit will be the subject of a broader roll-out across the US. Having bought the San Diego brewer late last year, Constellation was looking to “make the brand available in all 50 states… before calendar year-end”, said Sands. Ballast Point has since released a flavoured version of its Fathom IPA-style beer in the country.
- Towards the end of July, the CEO of jewellers Tiffany & Co was appointed to the company’s board of directors. Frederic Cumenal has previous drinks experience, having spent 15 years in senior leadership positions in LVMH Group’s wine and spirits businesses, most recently as president & CEO of the group’s Moët & Chandon unit.
- Comments from the founder of Boston Beer Co put the stellar performance of Constellation’s Corona beer brand into perspective: Jim Koch claimed in late-July that Corona still hadn’t passed its “2008 peak” since Constellation took control four years ago. Despite this, just-drinks’ news & insights editor, Andy Morton, noted that any kind of growth for beer in the US (outside of the craft segment) represented admirable work.
- A clearout of senior staff at Ballast Point hit the headlines at the end of July, with founder Jack White and COO Yuseff Cherney following CEO Jim Buechler and CCO Earl Kight out of the door within a matter of days of each other.
- A rise in employee numbers prompted plans, announced in mid-August, to move Constellation’s beer unit HQ. The move to new offices, still in Chicago, has been forced by a 60% headcount increase in the city over the past two years.
- Finally, towards the end of the month, the company confirmed its intention to take a more unified approach towards the Modelo beer brand. The “familial alignment” includes packaging changes and a new name for the Negra Modelo variant.