Constellation Beats Estimates; Announces New Brewery In Mexico
Constellation Brands says it is building a new, state-of-the-art brewery in Mexicali, Mexico. The announcement came Thursday as the Victor-based company also announced earnings and sales that beat Wall Street estimates.
Constellation saw profits of $271 million that were 22-percent higher than a year ago. Sales rose 6 percent.
The new brewery is expected to cost $1.5 billion to build and be completed in 4 to 5 years. Constellation is now the 3rd largest beer company by volume.
CEO Rob Sands says the company's Mexican beer business continues to significantly outperform the U.S. beer market and he says the new plant in Mexicali is well-suited in terms of location, it will be near California.
That's a fast growing region for Constellation. The company also plans to expand its brewery in Nava, Mexico. Sands says Constellation is seeing growing consumer demand for brands like Corona, Modelo, Pacifico and Victcoria.
Wine and spirits sales for the most recent quarter increased three percent.