Corona is planning the second launch of Arduous Seltzer this 12 months, says the CEO of the mum or dad firm
After making a splash last year with the launch of Corona Hard Seltzer, Constellation Brands, the parent company, is preparing to introduce new flavors for the hard drink later this year, CEO Bill Newlands told CNBC’s Jim Cramer on Thursday .
“It’s a great opportunity,” he said in a Mad Money interview after the company released its third fiscal year 2021 results.
Constellation, whose portfolio includes Corona Extra, Modelo Especial and Svedka Vodka, launched a series of Corona Selters in the spring of 2020, backed by a $ 40 million marketing boost to get into the popular among millennials To enter the beverage category.
After the company sold 10 million cases of Seltzer last year, the company plans to introduce something called Variety Pack # 2, Newlands said.
“It’s a growing category and we’re going to take a significant stake in that,” he said.
Constellation reported that the seltzer product exceeded its volume expectations. According to Newlands, the company plans to more than double the capacity of Selters in the coming year.
The current variety package available on store shelves includes tropical lime, mango, cherry and blackberry lime. Newlands didn’t say what flavors might be in the upcoming launch.
Corona’s announcement “Soon ashore”.
Overall, the Corona brand family grew nearly 12% in IRI market data, according to the company.
Constellation Brands shares rose 2.3% on Thursday to hit a record $ 228.87. The company released its quarterly report before the market opened, exceeding Wall Street’s expectations.
Constellation reported adjusted earnings per share of $ 3.09 on revenue of $ 2.44 billion, up nearly 22% year over year for the quarter ended November. The earnings per share increased by 44% compared to the previous year.
The company said it managed to offset the roughly 35% decrease in on-premise or restaurant and bar sales due to the coronavirus pandemic with off-premise or retail beer sales.
“We have the brands that are in demand and one of the things that people do when they buy for the home is they stick with things they know and they stick with things they trust and us have brands that people trust, “Newlands said.
In 2020, the stake in Constellation Brands increased by more than 15%. The stock has more than doubled from its pandemic lows in late March.