Crown Down, But Looking Up
Promos Driving Volume

Dear Client: For their fiscal first quarter, which runs March through May, Constellation Brands reported that their equity earnings from their half interest in Crown Imports was $54 million, which is down 14% from last year. Net sales were down 3%, to $622 million. Operating income was $109 million, also a decrease of 14%. The lower sales were impacted "primarily by higher promotions, unfavorable mix and lower volume. Operating income for Crown decreased primarily due to timing of promotional and