Constellation Beats Expectations

Constellation reported better than expected first quarter earnings, with net sales benefiting from price increases in domestic and international markets and improved mix by acquiring brands like Clos du Bois and Wild Horse, while disposing of the lower-margin Almaden and Inglenook wines. In addition, the overlap of the U.S. distributor wine inventory reduction, which was completed in the first two quarters of 2008, provided additional operating leverage. Shares were up almost 6% in early morning trading.U.S. WINE SHOWS STRONG MOMENTUM.