Constellation’s European sales take a hit

Constellation has admitted that branded wine sales in Europe fell by 11% in its third financial quarter.


It said that its policy of pushing through price increases, and reducing SKUs, in key markets had hit volume growth but enhanced margins.


The benefits of acquiring the Clos du Bois and Wild Horse brands were offset by the sale of Almaden, Inglenook and some Pacific Northwest brands.


"We are pleased with our performance especially given the challenging economic conditions that evolved over the course of the year," said Rob Sands, Constellation's president and chief executive. 

Constellation's third quarter 2009 net income on a comparable basis, which excludes restructuring charges, integration costs and unusual items, totalled $132 million versus $121 million for the previous year.

John Mills has been appointed as senior vice president for sales at Constellation Europe, heading a newly-combined team covering the continent as well as the UK and Ireland.

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