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?
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
No, this is not PepsiCo's new ad slogan for its Mountain Dew brand....
Major wine players flocked to China ready for online giant Alibaba's 9.9 Global Wine and Spirits Festival, which took place on 9 September....
In May, Heineken's CEO, Jean-François van Boxmeer, called Vietnam the "poster child" for international beer thanks to strong demographics and growing demand....
- Will Coca-Cola Co’s Dunkin’ Donuts move pay off?
- Five ways small brands can beat big players
- Heineken's Q3 2016 results - Preview
- Interview, Bulldog Gin CEO Anshuman Vohra, Pt II
- Ten ways to successfully target older consumers
- Diageo weathers Thailand alcohol ban
- SWA's David Frost to leave for foreign office role
- Heineken's YTD performance by region - Focus
- Stock Spirits appointments provoke investor unrest
- Seedlip eyes global growth with export deal
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends