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03/07/2016

Constellation Looks to Lead Much Bigger High End; Invest, Innovate in FMBs, Superpremiums

Constellation Brands Beer Division's ambitious plans go well beyond doubling with fast-growing imports. As detailed at Gold Network Summit, CBBD seeks to cement status as "high end leader" with increased investment and innovation in new areas. "Our plans are to further accelerate the growth and keep this momentum going," said CBBD chief commercial officer Bruce Jacobson, with "even greater investment." Constellation sells top 2 imports, Corona Extra and Modelo Especial. They grew 20 mil cases last yr (see below). And it just put "$1 billion toe" in craft waters with acquisition of Ballast Point, noted new CBBD prexy Paul Hetterich. CBBD just "getting started" in craft, added Paul and "we've got more to do." But "can't ignore fact" that it has a "goose egg" in FMBs and superpremiums, noted Bruce. Paul also pointed to "a lot of white space" in superpremiums, where he expects "more sessionable big brands to evolve over time." And FMB segment, tho "constantly shifting," also "keeps getting bigger...we need to tackle that" too, said Paul, somewhere down road. "FMBs, new flavors, new styles, line extensions," said chief mktg officer Jim Sabia, "We are working on all these things." At same time, current portfolio will get "more and more resources to take these brands to the next level."

Constellation riding crest of a wave. High end beer went from 32 to 44 share of $$ in last 5 yrs, said Paul. Constellation sees high end growing to 2/3 of biz in 7-10 yrs. "That's where the center of gravity will be" in beer biz, he emphasized. "We are the ones that can really drive that," he added. Constellation "actually considerably ahead of that goal" of doubling in a decade, said Constellation ceo Rob Sands. "The worst thing we could possibly do is run out of beer," said Rob. "That would be shooting ourselves in the foot." Hence it's spending billions, not only on Nava expansion, but green field brewery in Mexicali. Nava is a "Herculean task" that in "most respects has gone without a hitch," said Rob. Paul "responsible for integrating" and there is "no one better" to become CBBD prexy. CBBD will have capacity for 395 mil cases in 2020 (sold 218.8 mil last yr).  

Publishing Info

  • Year: 2016
  • Volume: 47
  • Issue #: 5
Read 1353 times Last modified on 09/19/2016