After making a giant splash with the launch of Corona Hard Seltzer final yr, Constellation Brands, the guardian firm, is gearing as much as roll out new flavors of the hard drink later this yr, CEO Bill Newlands instructed CNBC’s Jim Cramer Thursday.
“It’s a great opportunity,” he stated in a “Mad Money” interview following the discharge of the corporate’s third outcomes of the 2021 fiscal yr.
Constellation, whose portfolio contains Corona Extra, Modelo Especial and Svedka Vodka, amongst different spirits and wine, launched a line of Corona seltzers in spring 2020 backed by a $40 million advertising and marketing push to enter the beverage class, which is well-liked amongst millennials.
After the corporate bought 10 million circumstances of the seltzer final yr, the corporate has plans to roll out what it is calling “Variety Pack #2,” Newlands stated.
“It’s a category that’s growing, and we’re going to take a significant share of it,” he stated.
Constellation reported that the seltzer product is topping its quantity expectations. Newlands says the corporate plans to greater than double capability in seltzers within the coming yr.
The present selection pack that may be discovered on retailer cabinets contains tropical lime, mango, cherry and blackberry lime. Newlands didn’t say what flavors could possibly be included within the forthcoming launch.
Corona’s advert ‘Coming Ashore Soon.’
As an entire, the Corona Brand Family grew nearly 12% in IRI market information, the corporate stated.
Shares of Constellation Brands rose 2.3% on Thursday to shut at a file $228.87. The firm launched its quarterly report earlier than the market opened, topping Wall Street’s top- and bottom-line expectations.
Constellation reported $3.09 in adjusted earnings per share on $2.44 billion in income, which was up practically 22% yr over yr for the quarter that resulted in November. Earnings per share was up 44% from a yr in the past.
The firm stated it managed to offset the roughly 35% decline in on-premise, or restaurant and bar, gross sales because of the coronavirus pandemic with off-premise, or retail, gross sales within the beer enterprise.
“We’ve got the brands that are in demand and one of the things that people do when they’re buying for home is they stick with things that they know and they stick with things that they trust, and we have brands that people trust,” Newlands stated.
In 2020, shares of Constellation Brands grew greater than 15%. The inventory greater than doubled from its pandemic lows in late March.