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Profits dip for Consolidated Brands

Published:  23 July, 2008

US: International drinks industry giant Constellation Brands has seen a fallback in third quarter earnings and sales.

"As anticipated, both the U.S. wine distributor inventory reduction and the lingering softness of our U.K. business impacted on our overall performance," said president and chief executive Rob Sands.

"However, we believe the distributor inventory initiative, as well as our ongoing efforts to improve performance in the UK, will better positon us for long-term growth," he said.

Consolidated net sales were down by 37%, overall branded sales were down 1%, with a 4% decrease in Europe.

The company attributed some of its earnings drop to acquisitions, such as the SVEDKA Vodka business, which subsequently helped push up its spirits sales by 11%.