This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Constellation Brands sees over 40% rise in eCommerce D2C sales
Constellation Brands has enjoyed a lift of over 40% in eCommerce direct-to-consumer (D2C) sales in its first quarter.
Speaking to analysts on Friday about its first quarter FY2024 financial results, the drinks company, which owns brands including Modelo, Corona and Svedka, revealed that consumers are beginning to adopt its D2C digital channels.
Constellation’s president and chief executive officer Bill Newlands revealed that the company’s “omnichannel focus has provided additional pillars of consumer-led growth, such as international and direct to consumer, the latter of which grew the channel’s net sales 13% in Q1” and added: “In fact, the eCommerce and customer loyalty portions of DTC business were up over 40% in Q1.”
Constellation Brands recently saw its Modelo brand become the US’s best selling beer following AB InBev’s Bud Light marketing controversy, partially sending Constellation’s shares up by 10% so far this year.
The drinks giant also has enjoyed improved margins and hopes to add to that record through acquiring Napa Valley wine brand, Domaine Curry from Coup De Foudre. Constellation-owned Ruffino also recently acquired 15 hectares of Bolgheri vineyards across two sub-regions, with four hectares in Bolgherese and 11 hectares in Sondraie.
The addition of Domaine Curry is part of Constellation’s strategy to invest US$100 million in Black- and minority-owned businesses by 2030.
Back in April, db revealed how Constellation’s financial strategy is paying off, with its sales of wines and spirits worth US$462.2 million and its beer division bringing in US$1.54 billion in the first quarter of 2023.