Constellation Has Tough Q3

Dear Client:Increased inventory at the US distributor level took a toll on third quarter sales to November 30 due to an expected inventory sales shift to the second quarter, Constellation chief Rob Sands said this morning. Organic net sales of branded wine declined -3% in North America. Recall that Constellation shifted $40-$50 million of inventory from the third quarter to the second quarter to ensure “maximum levels of customer service” for distributors and retailers after Constellation began its wholesaler consolidation