Constellation Brands has presented its figures for the fiscal year 2021, which ended on 28 February 2021. According to the report, net sales amounted to $8.615 billion, up three percent year-on-year, while profits rose by as much as 30 percent to $2.791 billion. This is mainly due to the beer division, which picked up especially in the first quarter of 2021 and provided a total of around $6.074 billion in sales.
In the wine and spirits segment, on the other hand, sales fell - as expected - by 16 percent to about 405 million litres. The value from these sales fell accordingly by seven percent to $2.54 billion. The profit was $622 million - twelve percent less than in the same period last year.
One reason for the decline is the premiumization strategy, including - above all - the sale of part of the wine and spirits division (such as the Nobilo brand) to Gallo for around $850 million. However, the company expects this to lead to higher profits in the future.
Moreover, new launches like the Meiomi Cabernet Sauvignon, Kim Crawford Illuminate and The Prisoner Unshackled performed very well on the market right at the beginning, thus partly compensating the losses.
"Fiscal 2021 was a dynamic and rewarding year as we produced excellent results while managing the challenges of the pandemic. I’d like to thank the Constellation team for driving success in the face of continued adversity. As we head into fiscal 2022, we’re operating from a position of strength. We’re well positioned for continued execution of our growth and premiumization strategy with a great portfolio of iconic brands and an exciting innovation agenda," commented CEO Bill Newlands on the results. aw