Constellation Brands’ beer business recorded an +11% increase in net sales growth, to $6.75 billion, for the company’s 2022 full fiscal year.
FY 2022 marked the company’s 12th consecutive year of volume growth, with +8.8% shipments (sales to wholesalers) growth and +8.9% depletions (sales to retailers) growth – amounting to an additional 30 million case equivalents, CEO Bill Newlands said during a conference call with investors. Those metrics accelerated in the company’s fourth quarter of the year, with +9.9% shipments growth and +0.8% depletions growth. Net sales increased +14%, to $1.56 billion, in Q4.
The company attributed the growth to “continued strong demand in off-premise channels, as well as a return to growth in on-premise channels,” and noted that depletions growth was about +8% when adjusted to account for two additional selling days in the year.
Constellation’s beer portfolio – popular Mexican imports Modelo, Corona and Pacifico – “significantly outpaced the total beer category, the high-end segment, and was the No. 1 dollar share gainer, adding 1.2 market share points,” the company wrote.
Modelo Especial, the second best selling beer in off-premise retailers tracked by market research firm IRI, recorded a +15% increase in depletions for FY 2022 and accelerated to +17% depletions growth in Q4. Modelo’s Chelada line extension posted +30% depletions growth for FY 2022.
Corona Extra “sustained its reinvigorated growth trajectory” and increased depletions by +9% for both FY 2022 and Q4.
During the 2022 fiscal year, which ended February 28, the beer business was the brightest star in Constellation’s sky. Overall, the company’s total business – which includes popular wine brands Meiomi, Kim Crawford and The Prisoner, and spirits brands Svedka, High West and Casa Noble – recorded +2% net sales growth, to $8.8 billion, for FY 2022 and +8% for Q4.