Retailers, consumers and prices
Check Out Line: Drinking up profits at Constellation
Check out the rising spirits at Constellation Brands.
The maker of Svedka vodka and Robert Mondavi wine posted a $99.7 million profit in the second quarter, compared with a year earlier loss.
But it’s not because people are buying much more booze in the recession. In fact, sales fell 8 percent, though they rose 4 percent if you factor out issues like currency rate changes and divestitures.
Quarterly earnings of 54 cents a share were 13 cents ahead of analysts estimates.
The company has sold off some less-expensive brands and is cutting jobs to try to save costs. It has also cut debt by more than $1 billion since early 2008.
But people are still not buying as much at restaurants and convenience stores, keeping pressure on sales.
As part of a joint venture, Constellation is trying targeted promotions and new packages like 24-ounce cans of Corona beer to try to boost sales in those channels.
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