Constellation to axe one job in 20

Constellation has blamed the deteriorating drinks market in the UK and Australia for a reduction in its earnings forecasts for the current financial year – and says it will shed 5% of its global workforce to cut costs.

The drinks giant – whose brands include Hardys and Robert Mondavi – trimmed 10 cents off its earnings per share forecasts in the wake of what it called "an increasingly challenging global economic environment".

Bob Sands, president and chief executive officer of Constellation Brands, said: "The most significant impact was felt in the UK, where the economy weakened, retail competition intensified and we made the decision to forego participation in significant price discounting offered by multiple grocers.

"While we have already begun to take actions in the UK to align cost structure with the realities of the marketplace, we believe it is appropriate to implement additional cost reductions across our global business."

Constellation has completed the sale of its value spirits operations in the US to Sazerac for US$334 million, and will use $210 million from the proceeds to reduce debts in the 2010 financial year.

 

 

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