Constellation Brands Inc – the global wine, beer, and spirits company known for major wine brands like Clos du Bois, Robert Mondavi, Arbor Mist and Ravens Wood, as well as Svedka vodka and beers like Corona and Pacifico – has just released its first quarter earnings report with some interesting results. While its North America sales are way up with a 52 percent increase, overall revenue has still fallen short of expectations, leading Constellation Brands to contemplate layoffs.
According to Asbury Park Press, Constellation Brands surprised Wall Street by earning 39 cents a share within the last quarter, rising 17 points from last year and beating out this year’s expectations by two points. Other highlights have stemmed from a partnership between Constellation Brands and Mexico’s Grupo Modelo – sales from this venture have reportedly risen 9 percent, with equity income rising 10 percent to $60 million.
RELATED STORIES FROM WDM CONTENT NETWORK
- Greener Plastic Wine Bottles Hit the Market
- Technology Making the World a Healthier Place
- Frozen Food Gets Real
- CLICK HERE TO READ THE LATEST EDITION OF FOOD & DRINK DIGITAL
But even with this success, the brand still fell short. Overall revenue for Constellation Brands was $635 million, which fell a cool two million dollars short of Wall Street’s expectations for $637 million. Asbury Park Press attributes this to Constellation Brands selling off its weaker Australian and British wine business in January.
Following this sale, Constellation Brands has also announced that it plans to cut 100 jobs – 2.3 percent of its total workforce – as part of a business realignment and money saving strategy. According to a Reuters report, Constellation Brands expects to save more than $10 million by the 2013 fiscal year as a result of these job cuts.