Constellation Brands is reporting a strong end to its fiscal year with the latest quarterly earnings.
The company reported Thursday that it saw profits of nearly one-and-a-quarter billion dollars for its fiscal fourth quarter, and sales totaling nearly $2 billion.
Constellation saw profits and sales that beat expectations, with beer again a big factor for the company’s growth, while wine and spirits did not perform as well.
Constellation Brands' stock price on Thursday rose about 6.5 percent, increasing $11.76 a share to close at $191.45.
Constellation’s fourth quarter and full-year results help bolster the decision the Victor-based company announced on Wednesday, to sell around 30 wine and spirits labels to E. & J. Gallo Winery for $1.7 billion.
That trend is one of the reasons that Constellation is selling some of the lower priced wine and spirits brands to Gallo, and focusing instead on the premium category.
“It probably fits a bit more with their longer range strategy versus our strategy, where we’re trying to take more advantage of consumer trade-up, and believe that some of the iconic brands that we have at somewhat higher price points will be more valuable to the organization going forward,” Constellation’s President and CEO Bill Newlands told WXXI News on Thursday.
The sale to Gallo includes the Canandaigua Winery and Constellation's East Coast Distribution Center, also in Canandaigua, which together, employ just over 200 people.
Newlands said that Gallo has indicated it will continue to keep that operation in Canandaigua after the sale.
“Gallo fully intends to continue operating both the winery and the distribution center and we felt that this was highly in the interests of our employee base and it’s one of the reasons why Gallo was selected, because of their commitment to both the facilities and the people who are behind them,” Newlands said.
The sale of some of those wine and spirits brands and facilities to Gallo is expected to be completed by early June.
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