Constellation Brands posted a three percent increase in revenue for the first quarter of fiscal 2022, taking in approximately $2 billion. Operating profit grew by five percent to $723 million. As in the past, it is not the wine business but the beer division that is responsible for this growth with around eleven percent growth in sales and 14 percent increase in turnover.
Wine and spirits, which are considered together in the list, are responsible for a 6.3 (6.3 million cases) percent increase in sales volume and 16 percent organic sales growth. Constellation identifies Kim Crawford, Meioimi and The Prisoner brands as the best performing products. In the next quarter, the company will announce new launches such as the Robert Mondavi Private Selection 100% Cabernet Sauvignon and Chardonnay, Saldo Red Blend and The Prisoner Unshackled Sauvignon Blanc. For the full fiscal year 2022, Constellation expects wine and spirits sales to increase by 2-4 percent.
New vice president
In addition, the company announced that Matt McHargue will be the new senior vice president of Fine Wine and Craft Spirits. In his new position, McHargue is to primarily establish and expand this recently created business unit.
McHargue has 15 years of experience in the alcoholic beverage industry and has been with Constellation Brands for 11 years. He had already taken on his new role on an interim basis in March.
“I am pleased to congratulate Matt on his promotion and to partner with him to drive our fine wine and craft spirits portfolio vision,” said Hanson, Constellation's executive vice president and president of the Wine and Spirits Division. “Matt brings a luxury mindset, deep category knowledge, strong leadership and general management capabilities, and a passion for our vision that we're confident will enable him to lead us to success as we strive to meaningfully inflect our portfolio toward the high-end. I look forward to working with him and the team as we build a category-leading fine wine and craft spirits portfolio and continue to accelerate growth for our consumer-focused wine and spirits business."
"I am excited to take on this new role and partner with Robert and the team to stand up our fine wine and craft spirits organization and drive our ambitious vision," said McHargue. "Constellation continues to prove its intention of driving a bold and innovative agenda that puts consumers at the center and shapes the category, and I am eager to drive this aspect of its strategic vision."
Constellation Brands announced the creation of the new division in March. It is part of a premiumization strategy. According to its own statements, the company wants to become the “leading supplier of wine and craft spirits in the high-end sector”. aw
