Rob Speaks on the Industry, the Harvest and Holidays

Dear Client: Constellation Brands experienced "favorable product mix" in North America during the second quarter, but that was offset by a decrease in volume and higher promotional costs in the US. Depletions for US wine and spirits "lagged the market somewhat" for two reasons, said chief Rob Sands. One, price increases on certain specialty and value products earlier this year impacted volumes. And secondly, they have changed the timing of promotional activities in fiscal 2012 versus fiscal 2011 "to better