Constellation’s incoming CEO: broadening distribution for beer business “single biggest growth opportunity” on the horizon
Bill Newlands is a long-time alcohol executive. And from March next year, he will move into the top job at Constellation Brands, the drinks seller behind brands like Corona, Modelo, and more. Newlands recently spoke to reporters from the Chicago Tribune, where he took the time to talk up the company’s beer brands – according to Newlands, they may well be the driving force behind Constellation’s next couple of years.
Constellation Brands’ share price has appreciated by 1% over the past week
Source: Yahoo Finances
Speaking about the “beauty” of the beer business, and how Constellation can grow its business, Newlands said: “The single biggest growth opportunity we still have is broadening our distribution. As good as it’s gone, we still have a lot of upside to broaden our reach. With strong brands, that’s a great scenario. When you think about something like Corona, in particular, there’s just tremendous strength in that brand.”
Newlands also spoke to the strength of the company’s Modelo brand – another Cerveza beer that he says has the potential to become a market leader. He told reporters that it was “the singularly fastest-growing beer. It’s been up double digits now for 30 straight years. It’s a tremendous success story. It will probably pass Corona very shortly to be the No. 1 imported beer in the United States. And you have to realize the business today in Modelo is over 60 percent in the Hispanic community, so it really hasn’t become a mainstream beer per se, even though it’s grown like a weed.”
With a portfolio of fine wines and interesting investments elsewhere, Constellation Brands has plenty of cards to play. But in its beer brands, it may well have an ace up its sleeve.
Dominion holds Constellation Brands in its Global Trends Luxury Fund.
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