Constellation Brands salutes 'successful, seamless' Modelo beer transition
Last week, the New York-based firm, which also boasts an impressive wine and spirits portfolio, reported Q2 net sales of $1.46bn (€1.08bn). Beer sales during the three month period hit $815m (€600m) – a 3.4% increase on the $788m (€580m) reported in Q2 2013.
Constellation completed the purchase of Grupo Modelo’s US beer business, whose beer portfolio included popular beer brands, Modelo Especial, Corona Extra, and Corona Light, in June 2013 from Anheuser-Beusch InBev for approximately $4.75bn. Through the deal, Constellation acquired Modelo’s Nava brewery, situated just south of the US-Mexican border, and the other half of Crown Imports; the joint venture co-owned with Modelo for the US distribution of the latter’s beer brands.
As well as driving the reported 3% net beer sales growth during Q2, the core Modelo brands posted “notable growth,” Constellation Brands CEO, Robert Sands, explained during a company earnings call last week.
Sales of Modelo Especial increased 17%, Corona Light recorded net sales growth of 5%, and Corona Extra posted a net sales increase of 4% - “its best Corona summer since the inception of the Crown JV.”
“The second quarter marks the first time that we are reporting consolidated results for Crown and our new Mexican brewery,” said Sands. “And I’m pleased to report that the transition of our new beer business has been successful and seamless. Operations are running smoothly.”
“There has been no disruptions to service or delays in shipment and our beer supply chain is operating efficiently. Most importantly, the Crown commercial business, which the way had a great quarter, has not been impacted by the transition. Maintaining this high level of performance during the transition is a true testament to the talent and commitment of the Crown team and the Nava employees in Mexico.”
