Constellation Wine & Spirits Sales Down in Q2; Expecting Better Second Half

Dear Client: Constellation Brands reported its first half earnings (ended August 31) for fiscal 2014 this morning, during which net sales increased 60% to $2.1 billion. However, wine and spirits net sales were down 1% for the second quarter due to wine volume growth that was offset by higher promotional expenses and lower spirits volume. On its own, the wine division performed well with net sales for the second quarter up 2%, driven by the US wine portfolio. Meanwhile, focus