E-Malt.com News article: US: Crown Imports generates 6% higher net sales in FY2011

Constellation Brands Inc. said on April 7, its equity earnings from its 50 percent interest in the Crown Imports joint venture totalled $226 million in FY 2011, an increase of two percent from the prior year.

For fiscal 2011, Crown generated net sales of $2.4 billion, an increase of six percent, and operating income of $453 million, an increase of two percent. The net sales increase for Crown was driven by volume growth reflecting improvement in consumer demand and distributor inventories returning to more optimum levels. Operating income for Crown increased primarily due to the higher volume partially offset by a contractual cost increase and higher SG&A expense.

"Throughout the year, Crown built positive momentum in a number of areas by launching new products and packaging configurations and executing key advertising programs. This resulted in Crown outperforming the industry and the import category overall, with depletions growing low- to mid-single digits for the year," Rob Sands, president and chief executive officer at Constellation, said.

Constellation said its fiscal 2012 forecast is "tempered" by items including higher incremental marketing costs for Crown, which promotes brands such as Corona, Modelo Especial and Tsingtao in the U.S.

Crown Imports LLC is a joint venture that imports, distributes and markets the Modelo portfolio and other fine beer brands across the entire U.S. The Crown portfolio includes Corona Extra, the #1 imported beer in the U.S. and #6 beer overall, Corona Light, Modelo Especial, Negra Modelo, Pacifico, St. Pauli Girl and the Tsingtao beer brands.

Crown Imports is a 50-50 joint venture between Grupo Modelo, S.A. de C.V., Mexico's leading company in the brewing, distribution and sale of beer, and Constellation Brands, Inc., a leading international beverage alcohol producer, importer and marketer.


08 April, 2011