Constellation Brands Sees Some Improvement In Premium Wine
By Anjali Cordeiro, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Constellation Brands Inc. (STZ) has seen some
improvement in sales of premium wines over the last six weeks, but is staying
cautious in its outlook for the coming holiday season, the company's executives
said in an interview Wednesday.
In the last six weeks, the company has seen sales of premium wines grow at a
faster rate than cheaper "value" products, Chief Commercial Officer Jay Wright
said in an interview. "That's an indication to me that the category is stable
and there are one or two bright spots."
Still, given a high unemployment rate, Wright and Chief Executive Rob Sands
said they are staying cautious in their expectations for sales at the end of the
year.
"Our indications from our largest customers so far is that there is stability
and that is all we can expect," said Wright.
For years the wine maker grew by putting emphasis on acquisitions. But more
recently its focus has shifted away from buying new businesses to boosting
growth in existing ones.
Sands said Wednesday that the company would "look" at Altria Group Inc.'s (MO)
wine business if it ever came up for sale, although that business isn't a must
have for Constellation. Altria said in September that it has no plans to put up
for sale the wine business that it acquired when it bought smokeless tobacco
company UST.
Shares of Constellation were recently up 19 cents, or 1.2%, to $16.61.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@
dowjones.com
(END) Dow Jones Newswires
11-11-091328ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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