Blog: Olly WehringTime 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

Non-alcoholic beer fails the Bernstein challenge

Crazy days in the Bernstein offices. Taking time out from being one of the world’s top beverage analysts, the Bernstein team, lead by its London-based veteran Trevor Stirling, held its very own taste ...

BLOG

AG Barr launches Funkin innovation search

AG Barr has lined up a Funkin campaign in the UK to find an 'innovation champion'. ...

BLOG

Are you a beer geek? Take the Brewdog quiz and find out

Brewdog, the Scottish craft brewer, likes to claim its drinkers are some of the most knowledgeable around....

BLOG

The (temporary) return of Paul Walsh to the drinks debate

Paul Walsh just can't stay away from the drinks industry....

just-drinks homepage



Forgot your password?