Corona parent Constellation Brands’ first-quarter net profit fell 60% from a year earlier as the company spun off its craft brewing business

Constellation Brands Limited (Constellation Brands, hereinafter referred to as “Constellation brands”) recently announced the first quarter of the fiscal year 2024 financial results, time opened March 1, 2023 – May 31, 2023. Overall, Constellation brand net sales of 2.515 billion US dollars, an increase of 6.39%, net profit of 136 million US dollars, a drop of 65.11%.

Among them, the net sales of the beer business segment were 2.098.6 billion US dollars, an increase of 10.56%. Wine segment net sales of $361.0 million, down 10.67% year over year. Spirits segment net sales of $55.3 million, down 9.20% year over year.

It can be seen that the beer sector sales climb on the company’s net sales increase has played a decisive impact. Analysis shows that the increase in beer net sales was mainly driven by higher volumes and the favorable impact of pricing.

According to the material, Constellation Group was founded in 1945 to handle the brewing and marketing of beer, wine and spirits, and owns more than 200 brands, including well-known beer brands Corona and Modelo, as well as the most important winery in the United States, Robert Mondavi.

In the new fiscal year, Constellation brand business changes and personnel changes frequently. In May 2023, Constellation Brand management decided to break into the craft beer business and sold Daleville, a craft beer workshop in Virginia, to New Belgium. Completed in 2017, the 259,000-square-foot facility houses products such as beer and flavored malt beverages.

In June 2023, Constellation Brand officially achieved the spin-off of craft beer. The company said the craft beer divestiture is in line with its strategic focus, which is to inherit and grow high-end imported beer brands through pillar leading margins and strengthening operational performance.

On The other hand, on June 26, Constellation Brand announced the purchase of Domaine Curry, a high-end Wine brand in Napa Valley, California, which will be included in the renovation investment of The Prisoner Wine Company in California, and the strong wine sector will operate. It is worth noting that Curry Winery was established in 2018 by the family of NBA Warriors star Stephen Curry.

In terms of personnel, the company recently announced that Rob Sands, Chief executive officer of the Constellation Brand, will step down as the president of the Board of Directors in March next year, and Bill Newlands, president of the company’s wine and Spirits segment, will replace him. Bill Newlands joined the Constellation Group in 2015 as executive Vice President and Chief recruiter. “Bill has a deep understanding of what it takes to make Constellation one of the best-performing Fortune 500 companies in the world and is waiting for Constellation to succeed under Bill’s guidance,” said the statement issued by Rob Sands.

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