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Corona maker Constellation looking to offload some wine brands

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Reuters
Last Updated : Feb 21 2019 | 3:25 AM IST

(Reuters) - Corona maker Constellation Brands Inc said on Wednesday it was looking to sell some of its lower-end wine brands, as it concentrates on the more profitable high-end segment.

"Everything that's not a power brand, you can assume that we're either going to sell it, discontinue it or milk it very quickly over the next year or so," Chief Financial Officer David Klein said at CAGNY, a major food and consumer products event in Boca Raton, Florida.

Reuters reported in October that Constellation was looking to sell some of its U.S.-based wine brands, in a deal that could be worth more than $3 billion.

Klein also said on Wednesday he expects Canadian marijuana producer Canopy Growth Corp's third-quarter results to hit Constellation's current-quarter earnings by about 10 cents per share.

Canopy, in which Constellation has invested more than $4 billion, reported a quarterly loss of 38 Canadian cents per share last week, bigger than analysts' estimates of a loss of 16 Canadian cents per share, according to IBES data from Refinitv.

Constellation's shares closed down 4.4 percent on Wednesday.

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The company also said it expects its earnings per share to rise at a rate of 10 percent over the next three years.

(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

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First Published: Feb 21 2019 | 3:18 AM IST

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