Global drinks company Constellation Brands recently released its quarterly profit report from the summer months. One major takeaway: Mexican brews remain hot in America.
The company’s Corona and Modelo lines finished among the best selling beers in America, continuing a trend from 2016. “The Modelo brand family drove strong portfolio performance during the key summer selling season with depletion growth of almost 20%,” the company reports.
This helped the company’s beer portfolio grow by 12.8% compared with this fiscal quarter last year. Constellation Brands also pointed towards its 2017 acquisition of Florida craft brewer Funky Buddha as helping advance “the company’s strategy of leading the high-end of the U.S. beer market.”
Capital expansion projects in Mexico remain on track, the company says. “The Nava brewery achieved record production volumes and Obregon performed at high utilization levels during the quarter.”
Wine and spirits sales are projected to finish around +11.7% compared with summer 2016. Constellation Brands has been on a buying spree lately in this category, and believes the results speak for themselves.
“Acquired brands including The Prisoner and Charles Smith wine brands, as well as High West Whiskey, delivered exceptional depletion growth of 30%, 74% and 37%, respectively,” the company reports.