Drinks company Constellation Brands this week reported a 10% growth in net sales, for $1.18 billion, during its third quarter fiscal 2017.
Net sales for beer increased 16 percent, the company says in a press release. This was due to a “12-percent increase in organic net sales driven primarily by volume growth and favorable pricing, and the acquisition benefit from Ballast Point.”
This despite fears that the company’s holdings in Mexican beer — including Corona — are threatened by the imminent inauguration of Donald Trump as U.S. president. Trump had harsh words for Mexico during his successful presidential campaign, and has also promised to focus on America-made products.
Shares of Constellation Brands are down 15% from October. Investors remain hesitant.
Elsewhere, wine and spirits net sales increased five percent for Constellation Brands during the third quarter. This primarily reflects the “acquisition benefit from The Prisoner wine brands and favorable mix, partially offset by lower volume due to timing, as U.S. depletion volume outpaced shipment volume during the quarter,” the company reports.
The third quarter was also a busy time for sales and acquisitions. Constellation Brands sold off its Canadian wine business and obtained the Obregon brewery operation in Mexico, Charles Smith Wines and High West Distillery. All these moves reflect the current Constellation Brands strategy of capitalizing on U.S. market trends that favor high-end wine and spirits, the company reports.