Constellation Brands reports a jump in quarterly sales, driven by demand for its beers, such as Corona and Modelo, and raises its full-year profit forecast. Bobbi Rebell reports.
Investors raising their glass to Constellation Brands sending the stock to an all-time high. The alcohol distributor reporting a 16 percent jump in sales thanks to strong demand for beers like Corona and Modelo. The company also raised its full-year forecast. The big standout: beer sales. Constellation was able raise prices, and still sold more thanks to increased demand for craft drinks. They also just bought high-end craft whisky maker High West Distillery in a $160 million deal, expanding into the fast growing bourbon and rye business. Dave Henkes covers food and beverage industry at Technomic. (SOUNDBITE) DAVID HENKES, GLOBAL FOOD / BEVERAGE TREND WATCHER AND CONSULTANT, TECHNOMIC, (ENGLISH) SAYING: "We're certainly very bullish on where they're going because it certainly seems that they invested in a portfolio that is very aligned with where consumer's mindset and demand, and trends are, and so it certainly sees like they could continue to grow above the industry averages." The new brands will join other Constellation flagship brand names including Mondavi wine and Svedka Vodka.