Constellation Brands brings wine in a can to American Football fans
Constellation Brands, the alcoholic drinks giant behind market-leading beer brands like Corona and Modello, is looking to find a giant new audience this summer: football fans who want their wine in a can. The company said that it has partnered with the NFL to introduce its Crafters Union wine, canned in single-servings, to football fans. CEO Bill Newlands said the new product offering was “the perfect format for football games and tailgating.”
Constellation Brands’ share price has appreciated by 21% so far this year
Source: Yahoo Finance
Newlands told listeners on the company’s recent earnings call: “We have forged a relationship with the NFL to introduce our new Crafters Union wine in a can, which is the perfect format for football games and tailgating. We’re looking at single-serve Kim Crawford in a can as well. It is a great package for on-the-go and for, certainly, summer events.”
He added that Constellation’s research indicated that “consumers are comfortable with a can format for wine,” and said “we will participate with the brands that we feel are appropriate and where there is going to be real consumer demand within our portfolio.”
Constellation is still riding high from a positive earnings release at the turn of the month that surprised investors and analysts alike. On the same day it detailed these plans, competitor Anheuser-Busch InBev (the world’s largest beer maker) announced it was taking a controlling stake in Babe Wine, a canned wine business.
What’s driving this outbreak of canned wine products? Largely, consumer preference. According to BW 166, an alcohol market research firm, sales of canned wine went through the roof between June 2017 and June 2018, rising by 43%. Canned wines, however, still only account for 2% of wine sales. According to Nielsen, another research firm, more than 20 brands sell almost 400 different wines in cans, a market that currently generates $81 million in annual sales. If Constellation and its competitors are correct in their assessment of the market, expect all these numbers to rise over the coming months and years.
Dominion holds Constellation Brands in its Global Trends Luxury Fund.
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