Hard seltzer a bright spot as Constellation Brands sees decline in second quarter sales
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The beer and wine maker highlighted the performance of its Corona Hard Seltzer brand, which it said holds the No. 4 spot amongst all hard seltzers. Hard seltzer is a relatively new product category that beer makers are flocking to in the hopes of enticing the increasingly hops-averse crowd.
Further offsetting coronavirus losses, overall beer shipment sales to retailers grew by five per cent. Modelo, one of Constellation’s top beers, posted nine per cent growth in its shipments to retailers.
Into the second quarter, wine sales continued to decline. Net sales dropped by 11 per cent year over year to US$624.5 million from US$703.6 million. Growth was mostly led by its higher-end wines, including Kim Crawford, Meiomi and the Prisoner portfolio.
Constellation is slated to launch a number of new wines in the third quarter, as well as ready-to-drink cocktails with its Svedka vodka and High West whiskey brands.
Constellation has continued to lose money on its investment in cannabis company Canopy Growth, reporting an additional $31 million in losses.
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