Analysis

Analysis - Constellation Brands ready for Crown Imports price hike

Most popular

What rum needs to do to recognise its potential

Can alcohol slow the onset of dementia? - analysis

A-B InBev's Craft Brew Alliance purchase - Comment

Why single malt should ignore its core consumer

How much should you drink to help you live longer?

MORE

Constellation Brands is poised to accelerate pricing on its Crown Imports labels after first-quarter results showed the recently-acquired beers in rude health, an analyst has said.

//i2.aroq.com/1/logo2.jpg

The Crown portfolio, which Constellation acquired full-control of from former JV partner Grupo Modelo last month, saw sales increase by 5% in yesterday's Q1 figures. An announcement of a bigger marketing spend for the rest of the year was also “a sign of confidence” in the brands, Stifel's Mark Swartzberg said today (3 July).

Swartzberg added that pricing for Crown Imports beyond the 2% taken last year “may be imminent”.

“We believe pricing in-line with Anheuser-Busch InBev's 3% to 4% rate increases is likely long-term,” Swartzberg said.

Swartzberg also reiterated his view that pressure to promote and innovate in wines and spirits will continue to erode the categories' EBIT margins until at least the end of fiscal-2016.

The Crown Imports deal, which gives Constellation perpetual US rights for the Modelo brands, makes the company the third-biggest brewer and beer seller in the US market. It also gave it ownership of a Modelo brewery on the Mexico-US border.

For a full round-up of just-drinks' coverage of Constellation's Q1 results, click here.


Related Content

Will cannabis inflict more change at Constellation Brands? - Analysis

Will cannabis inflict more change at Constellation Brands? - Analysis...

Trump hands Mexican headache to Constellation Brands, Casa Cuervo, Diageo - Focus

Trump hands Mexican headache to Constellation Brands, Casa Cuervo, Diageo - Focus...

Constellation Brands Performance Trends 2015-2019 - results data

Constellation Brands Performance Trends 2015-2019 - results data...

Constellation Brands' Q3 & fiscal-2019 to-date by category - results data

Constellation Brands' Q3 & fiscal-2019 to-date by category - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?