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|Monday, July 02, 2012||12:06|
- Achieves comparable basis diluted EPS of $0.40 and reported basis diluted EPS of $0.38
- Repurchases 18 million shares for $383 million during the quarter
- Reaffirms fiscal 2013 outlook: projects comparable basis diluted EPS of $1.93 - $2.03 and reported basis diluted EPS of $1.89 - $1.99
- Reaffirms free cash flow target of $425 - $475 million for fiscal 2013
- Intends to acquire remaining 50 percent interest in Crown Imports joint venture for $1.85 billion
- Agrees to purchase the Mark West brand for approximately $160 million
VICTOR, N.Y., June 29, 2012 - (drinks media wire) - Constellation Brands, Inc. (NYSE: STZ), the world's leading premium wine company, reported today its first quarter 2013 results and details relating to two acquisitions that are expected to positively position the company for the future.
"First quarter results were generally in line with our expectations. From an operational perspective, we are experiencing excellent marketplace momentum for our wine and spirits business and Crown's imported beer business," said Rob Sands, president and chief executive officer, Constellation Brands. "Earlier today, we announced we are purchasing the remaining 50 percent interest in the Crown joint venture, the leading beer importer in the U.S. This represents a significant milestone for Constellation Brands as we will become the sole importer of the Grupo Modelo brands in the U.S. and solidifies our place in this market for the long term. In addition, we are purchasing Mark West - the nation's best-selling pinot noir brand."
Launched in 2002, Mark West is primarily a California pinot noir that has grown into a nearly 600,000 case brand selling in the U.S. in the $10-$12 price range at retail. It is currently the top-selling pinot noir brand experiencing nearly 35 percent volume growth in SymphonyIRI channels. "Mark West is an exciting addition to our family of brands," said Sands. "It is a high growth, complementary brand to our existing portfolio." The transaction is expected to close in July and the company estimates the acquisition will be slightly accretive to diluted earnings per share for fiscal 2013.
Net Sales Commentary
Wine and spirits net sales on an organic constant currency basis decreased one percent reflecting higher promotional costs and a decrease in volume, partially offset by favorable product mix.
"Our first quarter sales and depletion trends were in-line with our expectations," said Sands. "As planned, the sell-in of new products into distributor and retail channels in last year's fourth quarter impacted our sales and depletion trends for the first quarter. However, consumer takeaway trends in SymphonyIRI channels remain robust, as our new product introductions as well as marketing and promotional investments gain traction. We believe our strong marketplace momentum positions us to grow in-line with the U.S. wine and spirits category in fiscal 2013."
|Company: Constellation Brands|
|Address: 207 High Point Drive, Building 100, - Victor, NY 14564|
|Country: UNITED STATES|