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Mexican Beer Sales Fuel Profit Growth for Constellation

Mexican Beer Sales Fuel Profit Growth for Constellation

Posted by Juan Gavasa on January 08, 2015

Constellation Brands Inc. (STZ), the global seller of wine and spirits, boosted its profit forecast for the year after sales of beer brands such as Modelo Especial and Corona Extra fueled growth.

Earnings will be $4.25 to $4.35 a share this year, the Victor, New York-based company said today in a statement. That’s up from a previous forecast of $4.10 to $4.25 and above the average analyst estimate of $4.24. Constellation’s shares jumped as much as 6 percent after the results were released.

The company’s beer sales gained 16 percent last quarter, outpacing its total growth of 7 percent. That helped make up for lower wine sales and higher spending on promotions. Constellation bought the rights to Corona, the country’s most popular beer import, in 2013 as part of a $5.3 billion deal with Belgium’s Anheuser-Busch InBev NV. (ABI)

“Our beer business continued to gain share across all channels during the third quarter driven by Modelo Especial, Corona Extra and Modelo Especial Chelada,” Chief Executive Officer Rob Sands said in the statement. “Our outstanding beer portfolio is experiencing tremendous momentum.”

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