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?
BLOG
Starbucks jumps on gin bandwagon
Starbucks has become the latest company to tap into the gin craze, with the launch of Starbucks Reserve Gin Barrel-Aged Cold Brew....
BLOG
Feeling Blue on Monday? Help is at hand
It may not be scientific, but the third Monday in January has been coined 'Blue Monday' - the most depressing day of the year. Dreamed up in the UK by a psychologist commissioned by a holiday company ...
BLOG
Bad day on the beer? This'll help
If you work for a brewer and are having a rough week, take a minute to regain some perspective with this, from the good people at US craft beer producer Sierra Nevada Brewing Co....
BLOG
Brewers Association "bid" to buy Anheuser-Busch InBev strikes a chord
Is this a case of if you can't beat them, buy them?...
Most Popular
Insights
- How to avoid a legal row over your brand name
- How cannabis blew the doors off enhanced waters
- Should alcohol consumption limits be reduced?
- The Coca-Cola Q1 2018 - results data
- Pernod Ricard YTD fiscal-2018 sales performance
News
- Beam Suntory completes ABV Brands takeover
- Spirits brands exit Twitter - survey
- Grupo Codorníu confirms Carlyle offer rejection
- A-B InBev tackles UK lager blues with Camden push
- Beam Suntory lines up UK Jim Beam on-premise push
Market research
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Cognac & brandy insights - market forecasts, product innovation and consumer trends
- Where Next for Bottled Water? Exploring consumer trends and innovation opportunities in bottled water
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Opportunities in the Global Spirits Sector: Analysis of Opportunities Offered by High Growth Economies