Blog: Time for a detox at Constellation
Olly Wehring | 25 March 2009
After every high comes a low, and so it is for Constellation Brands, which is looking to shed pounds as rapidly as a catwalk model in January.
The California-based group has today (25 March) announced plans to cut 5% of its global workforce, while it also reduced earnings guidance.
Granted, 5% of its workforce amounts to around 450 jobs worldwide - something that would barely cause a ripple in the car industry these days - but the move marks a period of firm retrenchment for a company that has spent years focusing on acquisitions.
In hindsight, ample forewarning was given in Constellation's third quarter results, when the group said that it would focus on cost savings and debt repayment for the remainder of its fiscal year and in the 12 months following.
Troy Christensen, president of Constellation's European business, told just-drinks in January that the firm would look to "clean up" its wine portfolio in 2009.
It is like the company has visited the sales, bought a bundle of clothes without trying them on, and is now working out what it wants to keep.
For the rest of the industry, Constellation's move will undoubtedly cause concern. Constellation, afterall, is the biggest wine firm in the world. In other words, if Constellation is having problems, what lies in store for everyone else?
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Soft drinks is losing the recycling game
- Heineken Q1 2017 by region - results data
- Cognac is back - is Remy Cointreau ready?
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Pernod Ricard posts solid YTD sales jump - results
- Pernod Ricard YTD fiscal-2017 sales performance
- Cognac needs innovation at bottom end - Pernod
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Flavoured Powder Drinks in 2017: Confronting an Ageing World