Earlier today, Constellation Brands reported a double-digit sales lift for fiscal-2017, with last year's Canadian wine sale boosting the bottom line. Here, just-drinks takes a closer look at the company's performance in the 12 months to the end of February by segment.

Constellation Brands Full-Year 2017 - Sales versus 2016

Source: Company results

  • Beer - reported net sales +17%, +13% organically

Constellation said that the performance of its beer portfolio was driven by volumes growth, favourable pricing and the acquisition benefit from San Diego's Ballast Point Brewing & Spirits, which the group bought in late-2015. CEO Rob Sands said every beer brand enjoyed a "solid performance", with Constellation being the "number one growth contributor to the US beer industry for the year".

Beer operating profits rose 21% in fiscal-2017, thanks to organic volumes increases and favourable pricing, Constellation said. However, growth was partially offset by higher marketing investment.

  • Wine & Spirits - reported net sales +6%, +4% organically

In a similar story to beer, Constellation's combined wine & spirits division saw sales helped by volumes growth and favourable mix, along with the addition of California's Meiomi and The Prisoner wine brands. Pulling the top-line in the other direction, however, was the divestment of the Canadian wine business in December, Constellation said. 

"Our wine and spirits business achieved strong earnings growth and margin expansion driven by our fast-growing, high-margin Focus Brands, which collectively delivered depletion growth of 9% for the year," said Sands. "We continue to gain distribution for our newly-acquired High West whiskey brands, as well as The Prisoner and Charles Smith wine brands, all of which posted strong, double-digit depletion growth for the year."

Operating profits from wine & spirits were up 10%, although larger SG&A and marketing spends in the year proved a drag on the bottom line.

Constellation Brands First-Quarter Fiscal-2018 - Net Sales by Segment

Source: Company results