Constellation Brands has promoted Sam Glaetzer to the recently vacated role of president of the US group’s wine-and-spirits division.
Glaetzer replaces Robert Hanson as head of the business unit and will also serve as a member of Constellation’s executive management committee.
Hanson, stepped down in January in a “mutually agreed” move. A day after Hanson's departure was announced, the Svedka vodka owner cut its forecasts for the annual sales and profits it expected to generate from its wine-and-spirits business.
Having joined Constellation in 2014, Glaetzer has worked as its general manager of international commercial sales and most recently was senior VP of global operations and international sales.
“Now that our strategic wine and spirits brand portfolio transformation is largely complete, and as we turn our focus more squarely towards strong commercial and operational execution for this business, Sam is uniquely equipped to lead our wine & spirits division at this pivotal time as we look to deliver growth and improved profitability,” Constellation CEO Bill Newlands said.
Constellation reset the forecasts for its wine-and-spirits arm alongside the publication of its third-quarter financial results.
Net sales rose 1% to $2.47bn, amid a 4% rise from Constellation’s beer business but a 7% slide in sales from the group’s wine-and-spirits arm.
Operating income was 7% higher at $797m. The profit performance of the beer and wine-and-spirits divisions followed their top-line results, with beer seeing operating income rise and wine-and-spirits reporting a decline.
On an organic basis, Constellation’s wine-and-spirits shipments fell 10.3% during the quarter. Depletions dropped 10%. The company highlighted a 6% rise in the depletions it saw from wine brand The Prisoner and an 80% jump from Mi Campo Tequila.
Constellation sees the wine-and-spirits division’s net sales dropping 7-9% in the year to the end of February, compared to its previous forecast of growth of a 0.5% decline at worst and a 0.5% increase at best.
The group will report its full-year results on 11 April.
